IBI-Rating has affirmed the credit rating of JSC «CRYSTALBANK» at uaAA grade

IBI-Rating informs on affirming of the long-term credit rating of JSC «CRYSTALBANK» at uaAA grade with «negative» outlook and CreditWatch listing. The Rating agency also affirmed the rating of bank deposit reliability of JSC «CRYSTALBANK» at «5» grade (excellent reliability).

JOINT-STOCK COMPANY «CRYSTALBANK» belongs to the group of banks with private capital according to the criteria for segregation banks to groups approved by the National Bank of Ukraine. The bank is owned by three resident individuals of Ukraine. The bank's market share has remained stable in recent years - in 2022, among 67 banking institutions in Ukraine, JSC «CRYSTALBANK» ranked 44th in terms of assets and 47th – in terms of customer deposits; 35th – in terms of corporate deposits; 44th – in terms of balance sheet capital, as well as 23rd – in terms of financial results. As of the beginning of January 2023, the regional network of JSC «CRYSTALBANK» was represented by the head office in Kyiv and 26 branches in 9 regions of Ukraine.

The regulatory capital of the Bank as of 01.01.2023 complies with the requirements of the current legislation and amounts to UAH 358.4 million. Tier I capital accounts for 67% of the regulatory capital structure. The institution has sufficient deviations reserves for most of the economic norms, including the regulatory capital adequacy ratio (N2), which as of 01.01.2023 was above 40% (with a minimum required of 10%), and the actual values of the liquidity coverage ratio (LCR) for all currencies and foreign currency were 435% and 199%, respectively (with a minimum required of 100%), indicating a high level of Bank's resilience to short-term liquidity shocks typical of crises when significant outflows of customer funds occur. The actual value of the net stable funding ratio (NSFR) as of 01.01.2022 was 200%, which significantly exceeds the minimum required value (90%) and indicates the availability of sufficient long-term funding.

The Bank's operations have been profitable over the past few years. The profit of JSC «CRYSTALBANK» for 2022 amounted to UAH 42.5 million. The net operating income demonstrates a relatively stable trend, although in the analyzed period, due to a certain increase in administrative expenses against the background of decreasing revenues, the value of the efficiency ratio of the banking institution's activities has slightly decreased, but remained at an acceptable level - about 142% at the end of 2022.

JSC «CRYSTALBANK» ratings affirmation is due to sufficient indicators of capitalization and the presence of financial support from shareholders; low level of problem debt in the structure of working assets; significant volume of assets in the form of risk-free investments in government securities, as well as sufficient indicators of efficiency and profitability of the institution. At the same time, the agency notes the preservation of insufficient balance of assets and liabilities by maturity dates, concentration of credit and deposit portfolios with major counterparties, as well as the sensitivity of the banking system of Ukraine to operational and credit risks, which is caused by prolonged military actions on the territory of Ukraine due to aggression from the Russian Federation, as well as deterioration of operating conditions and uncertainty regarding the prospects of economic development.

In order to conduct the analytical research, the materials provided by JSC «CRYSTALBANK» have been used, including: financial statements for 2020-2022 years, target performance indicators, 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