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IBI-Rating has downgraded the credit rating of «APEKS-BANK» PJSC to uaBBB- grade

04.04.2017
Rating agency IBI-Rating informs on downgrading of the long-term credit rating «APEKS-BANK» PJSC to uaBBB- grade, with a «negative» outlook. The credit rating remains on the Credit Watch List. The rating of bank deposit reliability has been affirmed at «3» grade (moderate reliability).

«APEKS-BANK» PJSC has been working in the domestic financial market since 2009 and belongs to small banking institutions. The Bank maintains a stable, albeit insignificant, market position, having a relatively stable customer base (almost 3.300 customers) in certain regions. The regional network of «APEKS-BANK» PJSC Is represented by 13 operating offices in 6 oblasts; Customer service is also carried out by the Head Office located in Kiev city. At the same time, diversification of activity remains weak Due to the high concentration of income generating assets And attracted resources by individual counterparties.

During the period under review, regroupings occurred in the composition of the management of the banking institutions, and also, there was an increase in the authorized capital by almost UAH 100m. At the same time, as a result of the additional issue, the ownership structure did not change, i.e. – the final beneficiary of the banking institution remains Mr. Kuznetsov E.E.

The results of the 2016 transactions with non-current assets and liabilities led to significant changes in the financial statements of the banking institution, namely: customers withdrew a significant amount of funds; a part of income generating assets were re-valued and reassigned. The bank's operations in 2016 were unprofitable. As of the beginning of the current year, the bank had insufficient volume of the regulatory capital and violated individual economic NBU ratios. In the opinion of the Rating agency «IBI-Rating», «APEKS-BANK» PJSC has rather high sensitivity to prudential risk; sensitivity of the banking institution to other individual risks is moderate.

The ratings of the bank are maintained by keeping of sufficient liquidity ratios, as well as the improved capitalization ratios, including through an additional issue of shares and transactions with individual assets (re-assignment of non-performing loans). At the same time, a negative impact on the ratings of the banking institution have, as follows: a significant volume of troubled assets, violation of certain economic ratios established by the NBU, as well as the Bank's working under the Financial Recovery Program. Additionally, the ratings of the institution are limited to low operating profitability and increased sensitivity of the financial result to changes in the market environment, especially in the regulatory field, as well as the bank's internal operations. In turn, Rating agency IBI-Rating notes preservation of the difficult situation in the economy limiting the financial capacity of the population and enterprises of the real sector and adversely affecting the level of confidence in banking institutions.

In order to conduct the analytical research the materials provided by «APEKS-BANK» PJSC have been used, including: annual financial statements for 2014-2016, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

Finance department

For more information please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua