IBI-Rating has affirmed the credit rating of JSC «BTA BANK» at uaA grade

Rating agency IBI-Rating informs on affirming of the credit rating of JSC «BTA BANK» at uaA with «in development» outlook. The rating of bank deposit reliability has been affirmed at «5» grade (excellent reliability).

JSC «BTA BANK» has been operating in the banking market since 1992 and belongs to a group of banks of foreign banking groups according to the criteria of allocating of banks to groups. The sole shareholder of the banking institution is BTA Bank JSC (Kazakhstan), the final beneficiary is a citizen of the Republic of Kazakhstan – Mr. Rakishev Kenes. The market share of the Bank has significantly decreased over the last two years - as of the beginning of July this year, among the 82 banking institutions of Ukraine, JSC «BTA BANK» ranked 67th positions by size of assets (compared with 38th position as of 01.01.2017), 72th - by the size of corporate deposits, 65th - by the size of retail deposits, 39th - by the size of balance capital, and 37th place - by the size of financial result. As of the beginning of July this year, the Bank serviced 10.9 thousand clients, of which 9.4 thousand are individuals.

The regulatory capital of the institution in the period under review has significantly decreased and as of 01.07.2018 amounted to UAH 389 million. At the same time, it should be noted that the sufficiency and size of the regulatory capital meets the requirements of the Regulator, liquidity ratios indicates shows a high ability of JSC «BTA BANK» to pay for their liabilities - the actual values ratio of Н4, Н5 and Н6 as of 01.07.2018 were more than 150%. Compared to previous year, the operating profitability indicators have slightly improved, inter alia, due to the optimization of administrative expenses and disbandment of the share of provisions. In turn, erformance indicators are limited to reducing the volume of profitable assets and an increase in market factors. The operational activity of JSC «BTA BANK» in the first half of 2018 was profitable, and the net financial result in this period was UAH 22.1 million.

The ratings are preserved by sufficient ratios of capitalization, diversification of funding sources in the context of creditors, as well as high liquidity indicators. At the same time, the Rating agency notes that in the current time Bank being the uncertainty of the further development of institution, reducing the diversification of sources of income in view of the significant reduction of the loan portfolio. 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 «BTA BANK» have been used, including: annual financial statements for 2015-2017 years and the first half of 2018, 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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