IBI-Rating has affirmed the credit rating of JSB «UKRGASBANK» and changed the outlook to «evolving»

IBI-Rating informs on affirming of the credit rating of JSB «UKRGASBANK» at uaAA grade, with a change of the rating outlook from «stable» to «evolving». The rating of bank deposit reliability has been affirmed at «5+» grade (excellent reliability).

JSB «UKRGASBANK» has been operating in the banking market since January 1999. Since 2009, the key owner of the institution has been the State, which is represented by the Ministry of Finance of Ukraine (almost 95% of the shares). According to the results of 9 months of 2019 among 76 banks JSB «UKRGASBANK» ranked 4th position by size of assets; 6th - by size of funds of population, 9th - in terms of balance capital and the 15th - by amount of generated profit, respectively. It should be noted that due to the active development of various banking products and active cooperation with the corporate sector, JSB «UKRGASBANK», according to the results of the January-September 2019, headed the rank of banks in terms of funds attracted from legal entities.

During the period under review, the banking institution has continued to strengthen its market position and currently serves about 2 million clients. The client portfolio is diversified by customer category, programs, sectors of the economy and regions. The JSB «UKRGASBANK» has a developed network of branches that cover all oblasts of Ukraine. As of October 01, 2019, the regulatory capital amounted to UAH 6.6 billion, net assets and balance capital - was UAH 104.4 billion and UAH 6.4 billion respectively.

The Bank is highly profitable and shows high performance of its main activity. Comparatively inexpensive resource base has a positive effect on the result of operational activity - the net operating income from the main activity by 9 months of 2019 amounted to UAH 3.5 billion, which is the largest indicator in the last few years. The amount of administrative expenditures during period under review was maintained as acceptable, which led to a high value of the efficiency ratio of almost 190%. The net profit of JSB «UKRGASBANK» in January-September of 2019 amounted almost to UAH 347million. In its turn, the Bank's financial result for the 11 months of 2019 amounted to UAH 836 million, which is in 22% higher than the result of the same period in 2018.

The affirming of the ratings of JSB «UKRGASBANK» with change of credit rating outlook to «evolving» is due to the expected accession investment in the capital of a new strategic investor - International Financial Corporation (IFC); the long-term improvement of market positions and diversification of activities through attracting of new customers; high capitalization and liquidity ratios; good quality of assets and sufficient level of provision for bad debts; high performance indicators of the core business, as well as the support by the State. At the same time, the Rating Agency takes into account preservation of the concentration of the loan portfolio by major borrowers and preservation of the difficult situation in the economy that limits the financial capacity of the population and enterprises of the real sector, adversely affecting the level of confidence in banks.

In order to conduct the analytical research the materials provided by JSB «UKRGASBANK» have been used, including: annual financial statements for 2016-2018 and 11 months of 2019, target performance indicators, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

Finance department

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