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 outlook revision from «negative» to «evolving» and CreditWatch listing. The Rating agency also affirmed the rating of bank deposit reliability at «5» grade (excellent reliability).

JOINT-STOCK COMPANY «CRYSTALBANK» belongs to the privately-owned banks group according to the criteria for segregation banks to groups approved by the National Bank of Ukraine. The bank's shareholders are three resident individuals of Ukraine. The bank's market share has remained stable in recent years - in the first half of 2023, among 65 banking institutions in Ukraine, JSC «CRYSTALBANK» ranked 40 in terms of assets and 43 – in terms of retail deposits; 33 – in terms of corporate deposits; 42 – in terms of balance sheet capital, as well as 40 – 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 01.07.2023 complies with the requirements of the current legislation and amounts to UAH 385 million, including 66% of tier I capital. The institution has sufficient deviations reserves for most of the economic norms, including the regulatory capital adequacy ratio which as of 01.07.2023 was above 46% (with a minimum required of 10%), and the actual values of the liquidity coverage ratio (LCR) for all currencies and foreign currency were 309% and 160%, 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 01.07.2022 was 280% which significantly exceeds the minimum required value (100%) and indicates the availability of sufficient long-term funding. The Bank's operations have been profitable over the past few years. The net profit of JSC «CRYSTALBANK» for the first half of 2022 amounted to UAH 30.3 million. The net operating income demonstrates relatively stable dynamics and the value of the efficiency ratio of the banking institution exceeds 150%.

JSC «CRYSTALBANK» ratings affirmation with outlook revision is due to: sufficient indicators of capitalization and the presence of financial support from shareholders; maintaining an acceptable level of liquidity against the background of early repayment of all borrowings from the regulator; 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 and 6 months of 2023, target 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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