IBI-Rating has affirmed the credit rating of «ALPARI BANK» JSC at uaBBB+ grade

IBI-Rating informs on the affirming of the credit rating of «ALPARI BANK» JSC at uaBBB+ grade, with a «positiv» rating outlook. Also, has been affirmed the rating of bank deposit reliability of «ALPARI BANK» JSC at «4» grade (high reliability).

«ALPARI BANK» JSC has been working in the financial market since October 2012 and currently belongs to a group of banks with private capital. The only shareholder of the bank is Mr Bakhtari Hedayat-Allah Musa. In the Q3 of 2018, the increase of authorized capital for the amount of UAH 32 million was registered - up to UAH 232 million. During the analyzed period, the bank actively attracted corporate clients for servicing, due to which the number of clients among legal entities has increased several times over the last year.

The bank invested funds mainly into highly liquid assets in the form of government bonds and deposit certificates of the NBU. The Rating Agency notes that there is a significant margin of deviations in all prudentials. In particular, as of the beginning of April 2019, the actual values of the regulatory adequacy ratio of regulatory capital and liquidity standards were in several times higher than the minimum values set by the regulator. It should also be noted that «ALPARI BANK» JSC with a significant margin meets the requirements regarding the value of the liquidity coverage ratio (LCR), set by the regulator at the beginning of 2019.

Taking into account the increase in administrative costs associated with the development of the institution (including staff maintenance, rental of premises, marketing, advertising, software development and implementation, etc.). The bank’s activities in 2018 and January-May 2019 was unprofitable - a negative financial result for the specified periods was amounted to UAH (-) 4.6 million and UAH (-) 8.5 million.

Affirming of a long-term credit rating with a positive outlook is due to an increase in authorized capital and size of operations (it helps to improve the diversification of operating income sources), as well as high liquidity indicators. In turn, the Rating Agency notes the low level of performance indicators, due to the growth of administrative costs; a weak market position and an insignificant customer base, which leads to a concentration of the loan portfolio and liabilities by major counterparties. Also, the ratings of the banking institution are influenced by the preservation of high sensitivity of the banking system to operational risks due to the volatility of the legislative field, the difficult situation in the economy, the introduction of a legal regime of martial law in certain regions of Ukraine, as well as limited financial capacity of the population and enterprises of the real sector.

In order to conduct the analytical research, the materials provided by «ALPARI BANK» PJSC have been used, including: the annual financial statements for 2016-2018 and 5 months of 2019, planned performance indicators, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

Financial Department
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