IBI-Rating has affirmed the credit rating of «ALPARI BANK» JSC at uaBBB+ grade, the rating outlook is «evolving»

IBI-Rating informs on the affirming of the credit rating of «ALPARI BANK» JSC at uaBBB+ grade, the rating outlook is «evolving». Also, has been affirmed the rating of bank deposit reliability of «ALPARI BANK» JSC at «4» grade (high reliability).

«ALPARI BANK» JSC has been working in the financial market since October 2012 and currently belongs to a group of banks with private capital. The only shareholder of the bank is Mr Bakhtari Hedayat-Allah Musa. The last increase of the authorized capital of the institution took place in the Q3 of 2018 - in the amount of UAH 32 million (up to UAH 232 million). During the analyzed period, the bank actively attracted corporate clients and private persons for servicing, due to which the total number of customers has increased several times over the last year.

The bank invested funds mainly into highly liquid assets in the form of government bonds and deposit certificates of the NBU. The Rating agency notes that there is a significant margin of deviations in all prudential. In particular, as of the end by Q3 of 2020, the actual value of the regulatory capital adequacy ratio was almost two dozen times higher than the minimum value set by the regulator. It should also be noted that «ALPARI BANK» JSC with a significant margin meets the requirements regarding the value of the liquidity coverage ratio (LCR), set by the regulator at the beginning of 2019.

In the analyzed period, the bank optimized administrative costs (including staffing, marketing and advertising), which affected the improvement of the efficiency ratio. In turn, due to the decline in the yield of government securities (the main income assets of the institution), the activities of «ALPARI BANK» JSC in January-October 2020 was unprofitable - a negative financial result for this period amounted to UAH 3.7 million.

Affirming ratings of «ALPARI BANK» JSC is due to the scaling up (it helps to improve the diversification of operating income sources), as well as high liquidity indicators. In turn, the Rating agency notes low performance indicators, due to lower yields on government securities; weak market positions and insignificant customer base, which leads to the concentration of the loan portfolio and liabilities to major counterparties. Also, the ratings of the banking institution are also affected by the sensitivity of the banking system of Ukraine to operational and credit risks, given the deteriorating of the epidemiological situation in the country, as well as the probability of re-imposition of economic and administrative restrictions on economic entities and individuals.

In order to conduct the analytical research, the materials provided by «ALPARI BANK» PJSC have been used, including: the annual financial statements for 2017-2019 and 9 months of 2020, planned performance indicators, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

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