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

IBI-Rating informs on affirming of the long-term credit rating of JSC «CREDITWEST BANK» at uaAA+ grade; the rating outlook is «evolving». Also, the rating of bank deposit reliability has been affirmed at «5+» grade (excellent reliability).

JSC «CREDITWEST BANK» was registered by the National Bank of Ukraine in October 2006 and currently belongs to a group of banks of foreign banking groups. The shareholder of the bank is a foreign company JSC «ALTINBAS HOLDING ANONIM SIRKETI» (Turkey). The bank is guided by the policy of continuous reinvestment of profits in the authorized capital, which contributes to the gradual growth of the market share and high financial stability of the banking institution. In the analyzed period, the regulatory capital of the bank increased due to profitable activities as of the end of Q3 by 2020 amounted to UAH 393 million, of which 100% - Tier I capital. JSC «CREDITWEST BANK» complies with the requirements of current legislation on the amount of authorized and regulatory capital and has a sufficient margin of deviations in capital ratios for further development. In particular, the actual value of the H2 standard as of October 1, 2020, was almost three times higher than the minimum set by the regulator. Liquidity indicators are also maintained at a high level.

Following the results of January-September 2020, among 74 banks of Ukraine, the JSC «CREDITWEST BANK» was in 48 positions by the amount of assets; 51 - by funds of corporates; 50 - by population's funds; 38 - by balance capital, and 41 - by the amount of profit. The bank maintains a competitive product line in the corporate segment, primarily serving the trading partners of Turkish enterprises.

JSC «CREDITWEST BANK» is highly profitable, performance ratios are maintained at a high level. In particular, the efficiency ratio of the bank during the analyzed period remained at a level above 150%, and net profit for January-September 2020 amounted to UAH 13.2 million.

The affirmed ratings of JSC «CREDITWEST BANK» is due to maintaining high liquidity and capitalization of the financial institution, and the bank's membership in the Turkish financial-industrial group Altinbas, which specializes in precious metals, energy, logistics, finance, real estate and education. The bank demonstrates profitable activity and sufficient performance indicators. At the same time, the concentration of the resource base and loan portfolio is maintained in the context of key counterparties, which increases the institution's sensitivity to liquidity and credit risks. 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 carry out the analytical research the materials obtained from JSC «CREDITWEST BANK» have been used, including: financial statements for 2017-2019 and 9 months of 2020, 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