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IBI-Rating has affirmed the credit rating of JSC «BTA BANK» at uaA grade
15.09.2020
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 the first half of 2020, among 75 banking institutions of Ukraine, JSC «BTA BANK» ranked 69th positions by size of assets, 63rd - by the size of retail deposits, 50th – by the size of balance capital, and 71st place - by the size of financial result. As of the beginning of July 2020, the bank serviced 4 thousand clients, including 2.8 thousand individuals.
The regulatory capital of the institution meets the requirements of the NBU, and as of the first half of 2020 amounted to UAH 281.5 million. Given the significant reduction of the loan portfolio in recent years and investment in risk-free assets (government securities), the regulatory capital adequacy ratio reached a level above 170% as at July 1, 2020 (with a minimum of 10% required). Values of liquidity ratios indicate the high ability of JSC «BTA BANK» to pay their obligations.
A significant part of the banking institutions assets is formed by highly liquid assets in the form of investments in government securities. In July of the current year, the bank ceded the rights of claim for almost all problem loans and other assets, which affected the reduction of NPL from UAH 410 million to UAH 3 million as of August 1, 2020. In addition, overdue debts on loans and accrued income with a significant reserve are covered by the formed provisions, which reduces the risk of increasing pressure on the capital of the banking institution. In turn, taking into account the negative result from transactions with distressed assets and mortgaged property, reduced yields on government securities, as well as a partial increase in administrative costs, the activities of JSC «BTA BANK» in the first half of 2020 were unprofitable. The loss for the specified period amounted to UAH 43.1 million.
The bank's ratings are preserved by sufficient capitalization indicators, diversification of funding sources by creditors, and high liquidity ratios. At the same time, the Rating Agency currently notes the uncertainty of the further development of the banking institution, low diversification of sources of income due to a significant reduction in the loan portfolio. In addition, the level of ratings is affected by the increasing sensitivity of the banking system of Ukraine to operational and credit risks, due to the deteriorating epidemiological situation in the country, as well as the imposed of economic and administrative restrictions on entities and the population.
In order to conduct the analytical research, the materials provided by JSC «BTA BANK» have been used, including: annual financial statements for 2017-2019 years and the first half of 2020, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.
Financial department
For additional information please contact:
Press office of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua
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 the first half of 2020, among 75 banking institutions of Ukraine, JSC «BTA BANK» ranked 69th positions by size of assets, 63rd - by the size of retail deposits, 50th – by the size of balance capital, and 71st place - by the size of financial result. As of the beginning of July 2020, the bank serviced 4 thousand clients, including 2.8 thousand individuals.
The regulatory capital of the institution meets the requirements of the NBU, and as of the first half of 2020 amounted to UAH 281.5 million. Given the significant reduction of the loan portfolio in recent years and investment in risk-free assets (government securities), the regulatory capital adequacy ratio reached a level above 170% as at July 1, 2020 (with a minimum of 10% required). Values of liquidity ratios indicate the high ability of JSC «BTA BANK» to pay their obligations.
A significant part of the banking institutions assets is formed by highly liquid assets in the form of investments in government securities. In July of the current year, the bank ceded the rights of claim for almost all problem loans and other assets, which affected the reduction of NPL from UAH 410 million to UAH 3 million as of August 1, 2020. In addition, overdue debts on loans and accrued income with a significant reserve are covered by the formed provisions, which reduces the risk of increasing pressure on the capital of the banking institution. In turn, taking into account the negative result from transactions with distressed assets and mortgaged property, reduced yields on government securities, as well as a partial increase in administrative costs, the activities of JSC «BTA BANK» in the first half of 2020 were unprofitable. The loss for the specified period amounted to UAH 43.1 million.
The bank's ratings are preserved by sufficient capitalization indicators, diversification of funding sources by creditors, and high liquidity ratios. At the same time, the Rating Agency currently notes the uncertainty of the further development of the banking institution, low diversification of sources of income due to a significant reduction in the loan portfolio. In addition, the level of ratings is affected by the increasing sensitivity of the banking system of Ukraine to operational and credit risks, due to the deteriorating epidemiological situation in the country, as well as the imposed of economic and administrative restrictions on entities and the population.
In order to conduct the analytical research, the materials provided by JSC «BTA BANK» have been used, including: annual financial statements for 2017-2019 years and the first half of 2020, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.
Financial department
For additional information please contact:
Press office of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua