IBI-Rating has determined the credit rating of JSC «CRYSTALBANK» at uaA+ grade with a «stable» outlook.

IBI-Rating informs on determining of the credit rating of JSC «CRYSTALBANK» at uaA+ grade with a «stable» outlook.

JOINT-STOCK COMPANY «CRYSTALBANK» is the first bank in Ukraine which created by DEPOSIT GUARANTEE FUND with the status of «Transition Bank». The Bank is the assignee of PJSC «TERRA BANK», which was declared insolvent in August 2014. In March 2015, the bank lost status of a «Transition Bank» and received a full banking license for the right to provide all banking services for legal entities and individuals under the current legislation. The last increase in the share capital of JSC «CRYSTALBANK» took place in September 2018 - due to reinvestment of the profits in previous years, the capital was increased to UAH 254.7 million. Banking institution belongs to the group of banks with private capital in accordance with the criteria for the allocation of banks into groups approved by the NBU. The shareholders are three individuals, residents of Ukraine.

Over the past three years, the bank's market share has noticeably increased - by the results of 2018, among 77 banking institutions of Ukraine JSC «CRYSTALBANK» ranked 47th position in terms by volume of asset and population's funds, 39th in terms by corporate deposits, 51th in terms by balance capital, and 54th place - in terms by financial results. Now the bank is actively developing cooperation with the population, providing, in particular, mortgage lending services, which helps to improve the diversification of active operations in the context of counterparties. The regional network of JSC «CRYSTALBANK» is represented by the Head Office in Kyiv, as well as 23 branches in 8 oblasts of Ukraine. The main part of the territorial divisions are located in the metropolitan region.

A banking institution has an adequate margin of deviations for most economic standards. In particular, the regulatory capital adequacy ratio (H2) as on the 1st of April 2019 was more than 47% (with the minimum required 10%), and the actual values of liquidity ratios (H4, H5, H6) at the relevant date were around 100 %. It should also be noted that, JSC «CRYSTALBANK» with a significant margin fulfills the requirements regarding the value of the liquidity ratio (LCR), which the regulator has introduced since the beginning of 2019. The performance indicators of a banking institution are at a sufficient level and indicate an acceptable ability of JSC «CRYSTALBANK» to generate capital through operating results while maintaining the good quality of earning assets. The activity of the bank is profitable - according to the results of 2018 and the first quarter of 2019, the net profit of the institution was, respectively UAH 7.97 million and UAH 3.18 million.

The level of the determined credit rating of JSC «CRYSTALBANK» is conditioned by sufficient indicators of the institution's capitalization, insignificant level of bad debts in the structure of working assets, sufficient indicators of efficiency and profitable operating activities. The Rating Agency also notes high liquidity ratios, which are secured by a significant amount of assets in the form of risk-free investments in government securities. In turn, the structure of liabilities retains a significant amount of demand deposits, which, against the background of the concentration of active and passive operations in the context of the main counterparties, increases the sensitivity to liquidity risk. Rating is also affected by the continued high sensitivity of the banking system to operational risks, which is due to the volatility of the legislative field, the difficult situation in the economy, and limited financial resources of the population and enterprises in the real sector.

In order to conduct the analytical research the materials provided by JSC «CRYSTALBANK» have been used, including: financial statements for 2016-2018 years and I quarter of 2019, target performance indicators, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

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