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IBI-Rating has affirmed the credit rating of «BTA BANK» JSC at uaA grade
14.03.2017
Rating agency IBI-Rating informs on affirming of the credit rating of «BTA BANK» JSC at uaA with a «stable» outlook. The rating of bank deposit reliability has been affirmed at 5 grade (excellent reliability).
«BTA BANK» JSC has been operating in the banking services market since 1992. The Bank currently serves about 17 thousand customers, and its regional network comprises 4 operating branches (3 branches in Kyiv city, and 1 branch in Lviv city). The key owner of the bank is «BTA Bank» JSC (Kazakhstan), which owns 99.99536% of the shares; beneficial owners of the bank are citizens of Kazakhstan – Mr. K. Rakishev and Mr. N. Subkhanberdin. Significant amount of revenues of the banking institution is formed by the operating lease of the commercial real estate (located in the city of Kyiv), which was purchased mainly at the banking institution’s own expense. According to the reporting, as at 01.01.2017, the regulatory capital amounted to UAH 1.67 bln. (value of N2 ratio was 80.04%), the balance sheet capital amounted to UAH 1.65 bln.
The structure of net assets (2.19 bln. UAH.) consists primarily of the investment property (UAH 1.23 bln.) and investments in Treasury securities (UAH 155.08 mln.), as well as debts of enterprises. Total revenues of «BTA BANK» JSC for 2016 amounted to UAH 357.3 mln., of which 54% were received in the IInd half 2016; expenses of the banking institution in 2016 amounted to UAH 356.7 mln. By results of 2016, the activity of the banking institution was profitable (UAH 0.56 mln.), which had a positive impact on dynamics of the owner’s equity. The owner’s equity exceeds significantly the loan and investment portfolio, allowing to minimize credit and currency risks. Operating profitability indicators remain low, which is caused by limited quality of the loan portfolio and increased market factors.
The bank ratings are supported by high ratios of capitalization, diversified revenue sources and a significant share of their off-resource component, as well as diversification of the resource base by creditors, currencies and components. At the same time, the value of performance indicators of core activities remains low, while sensitivity of financial results to changes in the market situation remains high. The quality of the loan portfolio and corporate securities is limited increasing the Bank’s sensitivity to credit risk.
In addition, a difficult situation in the economy persists limiting financial capabilities of the population and enterprises of the real sector and affecting adversely the level of confidence to banking institutions.
In order to conduct the analytical research the materials provided by «BTA BANK» JSC 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.
Financial Department. «BTA BANK» JSC has been operating in the banking services market since 1992. The Bank currently serves about 17 thousand customers, and its regional network comprises 4 operating branches (3 branches in Kyiv city, and 1 branch in Lviv city). The key owner of the bank is «BTA Bank» JSC (Kazakhstan), which owns 99.99536% of the shares; beneficial owners of the bank are citizens of Kazakhstan – Mr. K. Rakishev and Mr. N. Subkhanberdin. Significant amount of revenues of the banking institution is formed by the operating lease of the commercial real estate (located in the city of Kyiv), which was purchased mainly at the banking institution’s own expense. According to the reporting, as at 01.01.2017, the regulatory capital amounted to UAH 1.67 bln. (value of N2 ratio was 80.04%), the balance sheet capital amounted to UAH 1.65 bln.
The structure of net assets (2.19 bln. UAH.) consists primarily of the investment property (UAH 1.23 bln.) and investments in Treasury securities (UAH 155.08 mln.), as well as debts of enterprises. Total revenues of «BTA BANK» JSC for 2016 amounted to UAH 357.3 mln., of which 54% were received in the IInd half 2016; expenses of the banking institution in 2016 amounted to UAH 356.7 mln. By results of 2016, the activity of the banking institution was profitable (UAH 0.56 mln.), which had a positive impact on dynamics of the owner’s equity. The owner’s equity exceeds significantly the loan and investment portfolio, allowing to minimize credit and currency risks. Operating profitability indicators remain low, which is caused by limited quality of the loan portfolio and increased market factors.
The bank ratings are supported by high ratios of capitalization, diversified revenue sources and a significant share of their off-resource component, as well as diversification of the resource base by creditors, currencies and components. At the same time, the value of performance indicators of core activities remains low, while sensitivity of financial results to changes in the market situation remains high. The quality of the loan portfolio and corporate securities is limited increasing the Bank’s sensitivity to credit risk.
In addition, a difficult situation in the economy persists limiting financial capabilities of the population and enterprises of the real sector and affecting adversely the level of confidence to banking institutions.
In order to conduct the analytical research the materials provided by «BTA BANK» JSC 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.
For additional information please contact:
Press office of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua