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IBI-Rating has affirmed the credit rating of JSC «SKY BANK»
17.09.2024
IBI-Rating informs on affirming of the credit rating of JSC «SKY BANK» at uaAA- grade with «evolving» outlook. 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 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 300 million as of the beginning of July 2024.
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 July 1, 2024 amounted to UAH 474.8 million, including authorized capital – UAH 200.1 million. It is worth noting that due to profitable operations, the result of previous years has become positive and the process of reinvestment of profits in the authorized capital (in the amount of over UAH 25 million) is currently underway. 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 July this year amounted to 31% (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 182% and 1 124%, 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 July 1, 2024 amounted to 167%, which indicates the availability of a sufficient level of long-term funding.
By the results of 6 months of 2024, the efficiency ratio was almost 230%, and the result of JSC «SKY BANK» for this period was a profit of almost UAH 87.7 million (against a profit of UAH 28.8 million for 6 months of 2023).
The affirmed credit rating grade of JSC «SKY BANK» is due to sufficient capitalization and additional reinvestment of previous years' profits in the authorized capital, 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 2021-2023 and 6 months of 2024, 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 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 300 million as of the beginning of July 2024.
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 July 1, 2024 amounted to UAH 474.8 million, including authorized capital – UAH 200.1 million. It is worth noting that due to profitable operations, the result of previous years has become positive and the process of reinvestment of profits in the authorized capital (in the amount of over UAH 25 million) is currently underway. 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 July this year amounted to 31% (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 182% and 1 124%, 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 July 1, 2024 amounted to 167%, which indicates the availability of a sufficient level of long-term funding.
By the results of 6 months of 2024, the efficiency ratio was almost 230%, and the result of JSC «SKY BANK» for this period was a profit of almost UAH 87.7 million (against a profit of UAH 28.8 million for 6 months of 2023).
The affirmed credit rating grade of JSC «SKY BANK» is due to sufficient capitalization and additional reinvestment of previous years' profits in the authorized capital, 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 2021-2023 and 6 months of 2024, 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