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

Rating agency IBI-Rating informs on affirming of the credit rating of JSC «BTA BANK» at uaA, the outlook is «evolving». The rating of bank deposit reliability has been affirmed at «5» grade (excellent reliability).

JSC «BTA BANK» has been operating in the banking market since 1992 and belongs to a group of banks of foreign banking groups according to the criteria of allocating of banks to groups. The sole shareholder of the banking institution is BTA Bank JSC (Kazakhstan), the final beneficiary is a citizen of the Republic of Kazakhstan – Mr. Rakishev Kenes. According to the results of 2018, among 77 banking institutions of Ukraine, JSC «BTA BANK» ranked 68th positions by size of assets and corporate deposits, 65th - by the size of retail deposits, 40th – by the size of balance capital, and 59th place - by the size of financial result. As of the beginning of 2019, the Bank serviced 10 thousand clients, including 8.6 thousand individuals.

Regulatory capital of the institution meets the requirements of the regulator, and as of the beginning of 2019 amounted to UAH 351.7 million. Taking into account a significant reduction of the loan portfolio in the past year and investing in risk-free assets (government securities), the regulatory capital adequacy ratio exceeds 110% (with the minimum required 10%). The liquidity ratios indicates the high ability of JSC «BTA BANK» to pay their obligations - the actual values of norms H4, H5 and H6 as of January 1, 2019 several times exceeded the minimum required and were at the level of 190-260%. It should also be noted that JSC «BTA BANK», with a significant reserve, meets the requirements for the value of the liquidity coverage ratio (LCR) introduced by the regulator since the beginning of the current year. Performance indicators are limited to a reduction in the volume of profitable assets and an increase in market factors. In turn, JSC «BTA BANK» had operating profit in 2018 - its net financial result for the past year amounted to almost UAH 5 million .

The ratings are preserved by sufficient ratios of capitalization, diversification of funding sources by creditors, as well as high liquidity indicators. At the same time, the Rating agency notes that in the current time Bank being the uncertainty of the further development of institution, reducing the diversification of sources of income in view of the significant reduction of the loan portfolio. The ratings of the banking institution are also affected by the preservation of the high sensitivity of the banking system to operational risks, due to the volatility of the legislative field, the difficult situation in the economy, as well as the limited financial capacity of the population and enterprises of the real sector.

In order to conduct the analytical research the materials provided by JSC «BTA BANK» have been used, including: annual financial statements for 2016-2018 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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