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IBI-Rating has affirmed the credit rating of JSC «SKY BANK»
28.11.2023
IBI-Rating informs on affirming of the credit rating of JSC «SKY BANK» at uaAA- grade with outlook «evolving». The credit rating has been kept on the CreditWatch List due to the martial law imposed in connection with the invasion of russian troops in Ukraine, which has a significant negative impact on the country's economic condition and financial stability.
JOINT STOCK COMPANY «SKY BANK» is one of the first commercial banks in Eastern Ukraine, was founded on February 08, 1991 in the form of a limited liability company with the name Regional Commercial Bank «Region-Bank». The banking institution belongs to the privately-owned banks group - the main shareholder is an individual Babayev Arif (Kazakhstan), who owns 99.44% of the capital. The bank cooperates with clients from various industries, with the priority area of cooperation being comprehensive customer service for legal entities and entrepreneurs using modern banking technology solutions.
JSC «SKY BANK» is one of six partner banks integrated into the «eOselya» program (affordable housing lending program initiated by the President of Ukraine). Due to active participation in the program, the Bank has increased its mortgage loan portfolio to almost UAH 125 million as of the beginning of October 2023.
During the analyzed period, JSC «SKY BANK» complied with all economic standards of the NBU. The Bank's regulatory capital complies with the requirements of the current legislation and as of October 1, 2023 amounted to UAH 353.6 million, including authorized capital – UAH 200.1 million. The institution has a sufficient margin of deviation for most economic ratios, in particular, the regulatory capital adequacy ratio (R2) as of the beginning of October this year amounted to 37% (with a minimum required 10%). In turn, the actual values of the liquidity coverage ratios LCR for all currencies and in foreign currency amounted to 302% and 1868%, respectively (with the minimum required 100%), which indicates a high level of the bank's resilience to short-term liquidity shocks. The actual value of the Net Stable Funding Ratio (NSFR) as of October 1, 2023 amounted to 240%, which indicates the availability of a sufficient level of long-term funding.
By the results of 9 months of 2023, the efficiency ratio exceeded 300%, and the result of JSC «SKY BANK» for this period was a profit of almost UAH 54.6 million (against a loss of UAH 18.6 million for 9 months of 2022).
The affirmed credit rating grade of JSC «SKY BANK» is due to sufficient capitalization ratios, maintaining a high level of liquidity, the availability of financial support from the shareholder and related parties, sufficient performance indicators and profitable current activity, as well as acceptable structure and quality of assets. At the same time, the Rating agency notes the preservation of the concentration of the resource base and loan portfolio by key counterparties, insufficient balance of assets and liabilities by maturity, the sensitivity of the banking system of Ukraine to operational and credit risks due to the ongoing military operations in Ukraine due to the aggression of the Russian Federation, as well as the deterioration of the operating environment and uncertainty about the prospects for economic development.
In order to conduct the analytical research the materials provided by JSC «SKY BANK» have been used, including: annual financial statements for 2020-2022 and 9 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.
Finance Department
For more information, please contact us:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua
JOINT STOCK COMPANY «SKY BANK» is one of the first commercial banks in Eastern Ukraine, was founded on February 08, 1991 in the form of a limited liability company with the name Regional Commercial Bank «Region-Bank». The banking institution belongs to the privately-owned banks group - the main shareholder is an individual Babayev Arif (Kazakhstan), who owns 99.44% of the capital. The bank cooperates with clients from various industries, with the priority area of cooperation being comprehensive customer service for legal entities and entrepreneurs using modern banking technology solutions.
JSC «SKY BANK» is one of six partner banks integrated into the «eOselya» program (affordable housing lending program initiated by the President of Ukraine). Due to active participation in the program, the Bank has increased its mortgage loan portfolio to almost UAH 125 million as of the beginning of October 2023.
During the analyzed period, JSC «SKY BANK» complied with all economic standards of the NBU. The Bank's regulatory capital complies with the requirements of the current legislation and as of October 1, 2023 amounted to UAH 353.6 million, including authorized capital – UAH 200.1 million. The institution has a sufficient margin of deviation for most economic ratios, in particular, the regulatory capital adequacy ratio (R2) as of the beginning of October this year amounted to 37% (with a minimum required 10%). In turn, the actual values of the liquidity coverage ratios LCR for all currencies and in foreign currency amounted to 302% and 1868%, respectively (with the minimum required 100%), which indicates a high level of the bank's resilience to short-term liquidity shocks. The actual value of the Net Stable Funding Ratio (NSFR) as of October 1, 2023 amounted to 240%, which indicates the availability of a sufficient level of long-term funding.
By the results of 9 months of 2023, the efficiency ratio exceeded 300%, and the result of JSC «SKY BANK» for this period was a profit of almost UAH 54.6 million (against a loss of UAH 18.6 million for 9 months of 2022).
The affirmed credit rating grade of JSC «SKY BANK» is due to sufficient capitalization ratios, maintaining a high level of liquidity, the availability of financial support from the shareholder and related parties, sufficient performance indicators and profitable current activity, as well as acceptable structure and quality of assets. At the same time, the Rating agency notes the preservation of the concentration of the resource base and loan portfolio by key counterparties, insufficient balance of assets and liabilities by maturity, the sensitivity of the banking system of Ukraine to operational and credit risks due to the ongoing military operations in Ukraine due to the aggression of the Russian Federation, as well as the deterioration of the operating environment and uncertainty about the prospects for economic development.
In order to conduct the analytical research the materials provided by JSC «SKY BANK» have been used, including: annual financial statements for 2020-2022 and 9 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.
Finance Department
For more information, please contact us:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua