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

IBI-Rating informs on affirming of the credit rating of JSC «SKY BANK» at uaA- grade, with a «developing» outlook.

JOINT STOCK COMPANY «SKY BANK» is one of the first commercial banks of Eastern Ukraine, which was founded on 08.02.1991 as a limited liability company, with the name Regional Commercial Bank «Region-Bank». A banking institution belongs to a group of banks with private capital — the main shareholder is the individual Babaev Arif (Kazakhstan), which owns 99.44% of the capital. The Bank cooperates with clients from various sectors of the economy, with the priority being comprehensive customer service of companies and entrepreneurs using modern banking technology solutions.

Following the results of the first half of 2019 among 76 banking institutions (classified as solvent) JSC «SKY BANK» ranked 69th positions by asset; 59th - by the volume of the population's funds; and the 70th place - by financial result. As of the beginning of July 2019, the Bank's regional network is represented by its head office in Kyiv and 8 branches in Kharkiv.

The regulatory capital of the bank complies with the requirements of the current legislation, the stock of deviations for most economic standards is sufficient. At present, the indicators of the efficiency of the banking institution are under pressure of significant expenditures for carrying out measures to modernize the financial institution, updating of IT technologies, software, communication networks, etc. According to the results of January-June of this year, the net operating income of JSC «SKY BANK» amounted to over UAH 38 million, which primarily contributed to the significant result from the revaluation and sale of foreign currency. In turn, significant allocations to reserves for active operations against the backdrop of rising administrative costs resulted in a negative financial result of (-)UAH 18 million as of the end of the first half of 2019.

The affirming of the credit rating of JSC «SKY BANK» is conditioned by sufficient indicators of capitalization and liquidity, availability of financial support from the shareholder and related entities, an acceptable structure and quality of assets. At the same time, the concentration of the client loan portfolio and the deposit base in the context of key counterparties is relevant for the bank; low performance indicators, given the significant investment in the development of logistics; sensitivity of the banking system to operational risks caused by transformational processes in the economy, as well as instability of the legislative field.

In order to conduct the analytical research the materials provided by JSC «SKY BANK» have been used, including: annual financial statements for 2016-2018 year and the first half of 2019, target performance indicators, 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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