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IBI-Rating has affirmed the credit rating of «SBERBANK» JSC at uaAA+ grade

09.01.2019
IBI-Rating informs on affirming of the credit rating of «SBERBANK» JSC at uaAA+ grade with a «negative» outlook and keeping the rating on the Credit Watch List. As well, the rating of bank deposit reliability has been affirmed at «5+» grade (excellent reliability).

Due to the additional increase in the authorized capital in the period under review (in amount of UAH 8.3 billion), the Bank’s capitalization is maintained at a sufficient level. As of the beginning of October 2018, the actual value of the regulatory capital adequacy ratio corresponded to the requirements of the regulator and was more than 20% (with the minimum required 10%). The actual values of the prudential ratios of liquidity also significantly exceed the minimum permitted values established by the NBU. According to the financial statement of the Bank as of 01.10.2018, more than UAH 3.5 billion was invested in deposit certificates of NBU. The level of coverage of current liabilities with highly liquid assets is high - more than 260%, which testifies to the high ability of the institution to settle its liabilities.

«SBERBANK» JSC has high operational efficiency indicators - according to the results by 9 months of 2018, net operating income more than in twice exceeded the general administrative expenses. In turn, it should be noted that according to the results of the latest diagnosis of asset quality in the period under review, the bank recognized additional losses by NPL, which led to the formation of additional provisions in the amount of more than UAH 8 billion. As a result, the activity of the banking institution in January-September 2018 was unprofitable - the net financial result for the specified period amounted to UAH (-)7 billion.

The affirmation of the ratings of «SBERBANK» JSC is due to an increase in the authorized capital, high operating efficiency indicators, strong market positions, as well as diversification of investment funds and sources of resources. At the same time, the concentration of client loan portfolio by major borrowers remains, which increases the vulnerability to credit risk. The Bank’s ratings are also influenced by the uncertainty of the development strategy (taking into account the NBU sanctions imposed and the arrest of bank shares), the banking system’s high sensitivity to operational risks, which is caused by the volatility of the legislative field, the difficult economic situation, and limited financial capabilities of the population and enterprises in the real sector.

Keeping of the credit rating on the Credit Watch List is due to the entry into force of the Decision of the National Security and Defense Council of Ukraine, taken on 01 March 2018, on «Personal Special Economic and Other Restrictive Measures (Sanctions)» with regard to Ukrainian banks with the Russian state capital and the imposition of arrest on shares of «SBERBANK» JSC following the decision of the Kiev Court by Appeal in 05 September of 2018, according to which it is prohibited to perform any actions with these securities, as well as it is prohibited for the bank to liquidate or reorganize a legal entity, etc. (now this decision is being appealed in court).

In order to conduct the analytical research, the materials provided by «SBERBANK» JSC have been used, including: financial statements based on the results of 2015-2017 and 11 months of 2018, target performance indicators, 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