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IBI-Rating has affirmed the credit rating of «SBERBANK» JSC at uaAA+ grade
02.01.2020IBI-Rating informs on affirming of the credit rating of «SBERBANK» JSC at uaAA+ grade with a «negative» outlook and removing the rating from 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 of the authorized capital, as well as generate of the profit by 9 months of 2019, the Bank's capitalization is maintained at a high level. As of October 1, 2019, the actual value of the regulatory capital adequacy ratio meets the regulator's requirements and more than in 5 times exceeded the minimum required value. The measures provided by «SBERBANK» JSC during analyzed period provided for the institution sufficient capital in the macroeconomic baseline scenario and in the unfavorable scenario. This is evidenced by the results of the National Bank's stress testing. The actual values of the prudential ratios of liquidity (including LCR liquidity coverage ratio, set by the regulator at the beginning of 2019) also significantly exceed the minimum permitted values established by the NBU. The level of coverage of current liabilities with high liquid assets was at the level of more than 420% as of the end of Q3 2019, which testifies to the very high ability of the institution to pay on its own liabilities.
The dynamics of net operating income of «SBERBANK» JSC in 2019 was relatively stable. In turn, a significant increase of equity contributes to savings of the cost and, accordingly, maintains high performance. Thus, according to the results of January-September 2019, the level of administrative expenses coverage of net operating income (activity efficiency ratio) was 240%. During the analyzed period, the Bank managed to recover profitable activities - partial repayment of bad debt by clients, as well as exchange rate revaluation of foreign currency loans, contributed to the dissolution of reserves for active operations, which, in turn, contributed to obtaining a positive financial result. The net profit of the banking institution by 9 months of 2019 amounted to UAH 94 million.
The affirmation of the ratings of «SBERBANK» JSC with removing from the Credit Watch List is due to high grades of capitalization, liquidity and performance, 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.
In order to conduct the analytical research, the materials provided by «SBERBANK» JSC have been used, including: financial statements based on the results for 2016-2018 and 9 months of 2019, 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
Due to the additional increase of the authorized capital, as well as generate of the profit by 9 months of 2019, the Bank's capitalization is maintained at a high level. As of October 1, 2019, the actual value of the regulatory capital adequacy ratio meets the regulator's requirements and more than in 5 times exceeded the minimum required value. The measures provided by «SBERBANK» JSC during analyzed period provided for the institution sufficient capital in the macroeconomic baseline scenario and in the unfavorable scenario. This is evidenced by the results of the National Bank's stress testing. The actual values of the prudential ratios of liquidity (including LCR liquidity coverage ratio, set by the regulator at the beginning of 2019) also significantly exceed the minimum permitted values established by the NBU. The level of coverage of current liabilities with high liquid assets was at the level of more than 420% as of the end of Q3 2019, which testifies to the very high ability of the institution to pay on its own liabilities.
The dynamics of net operating income of «SBERBANK» JSC in 2019 was relatively stable. In turn, a significant increase of equity contributes to savings of the cost and, accordingly, maintains high performance. Thus, according to the results of January-September 2019, the level of administrative expenses coverage of net operating income (activity efficiency ratio) was 240%. During the analyzed period, the Bank managed to recover profitable activities - partial repayment of bad debt by clients, as well as exchange rate revaluation of foreign currency loans, contributed to the dissolution of reserves for active operations, which, in turn, contributed to obtaining a positive financial result. The net profit of the banking institution by 9 months of 2019 amounted to UAH 94 million.
The affirmation of the ratings of «SBERBANK» JSC with removing from the Credit Watch List is due to high grades of capitalization, liquidity and performance, 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.
In order to conduct the analytical research, the materials provided by «SBERBANK» JSC have been used, including: financial statements based on the results for 2016-2018 and 9 months of 2019, 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