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IBI-Rating has affirmed the rating of bank deposit reliability of "ALPARI BANK" PJSC at grade 4

23.09.2015
IBI-Rating informs on affirmation of the rating of bank deposit reliability "ALPARI BANK" PJSC at grade 4 (high reliability). Rating of bank deposit reliability at grade 4 indicates that the financial institution is reliable, pays timely its obligations within the requirements established by the current legislation of Ukraine, including those of the National Bank of Ukraine. The likelihood of problems with a timely return of deposits is low, although there is a certain dependence of the financial institution on the impact of external and internal factors. The impact assessment of external factors does not apply to the situations involving force majeure circumstances.

The affirmed rating of "ALPARI BANK" PJSC is due to its high ratios of capitalization, which cover the risks, which the Bank undertakes in carrying out its operating activity. At the same time, the financial institution meets its obligations to its creditors in a timely manner and in full, but the implementation of credit and market risks may put pressure on the Bank’s liquidity. During 6 months the asset quality has remained good, although the Bank's vulnerability to certain financial risks increases due to the exceptional concentration of the customer loan portfolio by major borrowers and available dependance on the financial condition of the issuers, whose securities the Bank has in its portfolio. Also, the impact of susceptibility to the financial risks may increase as a result of persistence of negative trends in the economy and a decrease in the borrowers’ solvency. However, the Rating agency did not reveal any significant complaints from the clients to the Bank’s operations and in the opinion of «IBI-Rating», if necessary, the Bank can count on the owner’s support. The implementation of legal requirements to change the owner of "ALPARI BANK" PJSC is in progress. It should be noted that the main part of the Bank’s resource base are own funds. The amount of the resource base is not significant, and a small number of lenders leads an exceptional concentration of the Bank’s resource base and the customer deposit portfolio by major depositors, which increases the vulnerability of the Bank to liquidity risk. At the same time, by the results of the 1st half of 2015 the Bank's activity was profitable, however, in the 2nd quarter of the Bank's operations were unprofitable, resulting in a reduction of profits earned in the Ist quarter of the current year. The Bank's performance indicators are low.

A positive impact on the rating of bank deposit reliability may have the following: reduced dependence on the financial condition of major borrowers, reduced concentration of the resource base by creditors and the customer deposit portfolio by major depositors, reduced dependence on the financial condition of major issuers, as well as the implementation of the main directions of the Bank’s development strategy. A negative impact on the rating of bank deposit reliability may have the following: the deterioration of the Bank’s solvency (liquidity), the growth of credit risk due to deterioration in asset quality, increased vulnerability of the Bank to market risks, the decline in performance indicators and preservation of the negative dynamics of the current financial results, as well as the deterioration of the political and economic situation in the country.

In order to perform the analytical research the materials provided by "ALPARI BANK" PJSC were used, including the annual financial statements for the 2013-2014 and the 1st half of 2015, the target performance indicators for the 2nd half of 2015, other necessary internal information as well as the information from public sources, which the rating agency considers reliable.

Department of finance ratings area
For more information please contact:
Press service of IBI-Rating
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