IBI-Rating has affirmed the credit rating of JSC «BANK 3/4» at uaA– grade with a «stable» outlook

IBI-Rating informs on affirming of the credit rating of JSC «BANK ¾» at uaA– grade, with a «stable» outlook. The rating of bank deposit reliability has been affirming at «4+» grade (high reliability).

JSC «Bank ¾» has been operating in the financial market since 2008 and belongs to a group of banks with private capital in accordance with the criteria for segregation banks to groups. The only one shareholder of the bank is Mr. Ishchenko V.A. (Chairman of the Board). At November 2018 was conducted state registration of the new edition of the Bank's Statute, which changed the name of the Bank from PUBLIC JOINT-STOCK COMPANY «BANK ¾» to JOINT-STOCK COMPANY «BANK ¾».

At the beginning of this year, the regulatory capital of the bank amounted to almost UAH 500 million, including the Tier 1 capital - UAH 465.8 million. The Bank has a substantial positive margin of deviation for prudential ratios. In particular, the actual values of liquidity ratios during the analyzed period several times exceeded the minimum required and as of the beginning of January 2019 they were at the level of 150-180%. It should also be noted that JSC «BANK ¾» with a substantial margin fulfills the requirements for the value of the liquidity ratio (LCR) have been introduced by the regulator since the beginning of 2019.

JSC «BANK ¾» is highly profitable, as evidenced by the financial result of the institution and performance indicators in recent years. Thus, according to the results of 2018, the net operating income of the bank amounted to over UAH 330 million, net profit amounted to UAH 46.7 million (UAH 60 million - for 2017). The Bank receives a significant amount of net operating income from its core business, which with a certain margin exceeds general administrative expenses - the value of the efficiency ratio over the year 2018 amounted to over 130%.

Affirming of JSC «BANK ¾» credit rating is due to the high ratios of capitalization, liquidity and effectiveness of core activities while maintaining good quality of working assets. At the same time, the Rating Agency notes the preservation of the concentration of the loan portfolio, as well as the resource base in the context of key counterparties. The ratings of the banking institution are also affected by the preservation of the high sensitivity of the banking system to operational risks, due to the volatility of the legislative field, the difficult situation in the economy, as well as the limited financial capacity of the population and enterprises of the real sector.

In order to conduct the analytical research the materials provided by JSC «BANK ¾» have been used, including: financial statements based on the results of 2016-2018, 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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