IBI-Rating has affirmed the credit rating of PJSC «BTA BANK» at uaA grade

Rating agency IBI-Rating informs on affirming of the credit rating of PJSC «BTA BANK» at uaA grade with changing in the outlook from «stable» to «in development». The rating of bank deposit reliability has been affirmed at 5 grade (excellent reliability).

PJSC «BTA BANK» has been operating in the banking services market since 1992 and belongs to the group of banks of foreign banking groups, as per the NBU criteria for allocating banks to groups. In July 2017, BTA Bank JSC (Kazakhstan) concentrated 100% of its participation in the Bank's capital. The ultimate beneficiary is a citizen of the Republic of Kazakhstan – Mr. Rakishev Kenes, who owns 93.285% of the shares of BTA Bank JSC (Kazakhstan). During the 2017 year, the market share of the Bank significantly decreased - as of the beginning of current year, among 84 banking institutions PJSC «BTA BANK» ranked 49th positions by asset (compared with 38th as of 01.01.2017), 66th - by the size of legal entities and population's funds, 31th - according by the size of balance capital, and 78th place - by the financial result. The Bank serves 11,8 thousand customers, of which 10,1 thousand are individuals.

At the end of 2017 and in the first quarter of current year, the Bank conducted several activities that led to a regrouping in the balance structure and affected on the level of economic standards. In particular, was sold investment real estate property (two business centers in Kiev, from the services of rental of which the Bank has previously received the major share of income), borrowings from the parent bank were repaid, borrowing from customers was reduced and assets were revalued. As a consequence, the regulatory capital of the institution in the period under review has significantly decreased and as of 01.01.2018 amounted to UAH 869 m. At the same time, it should be noted that the sufficiency and size of the regulatory capital meets the requirements of the Regulator and the value of liquidity ratios indicates shows a high ability of PJSC «BTA BANK» to settle its obligations - the actual values ratio of Н4, Н5 and Н6 at the beginning of the current year amounted to more than 120%.

The bank ratings are supported by high ratios of capitalization, diversification of the resource base in the context of creditorss, as well as high liquidity indicators. At the same time, the Rating agency notes low values of the performance indicators of the core business, as well as the persistence of a difficult situation in the economy, which limits the financial capacity of the population and enterprises of the real sector and adversely affects the level of confidence in banking institutions.

In order to conduct the analytical research the materials provided by PJSC «BTA BANK» have been used, including: annual financial statements for 2015-2017 years, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

Financial Department

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