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

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

JSC «UNEX BANK» has been operating in the banking market since 1993 and belongs to the group of banks with private capital. The main shareholder of the banking institution is the company «WITHINE INVESTMENTS LTD» (Cyprus), which owns 99.34% of the shares. The beneficial owner of the bank is Mr. Vadym Novynskyi. By results of the first half of 2019, among 76 banks of Ukraine, JSC «UNEX BANK» ranked 61st in terms by the size of assets and funds raised from business entities; 54th by the size of the population's funds; 54th - by the size of the balance capital, and 68th in terms of the financial result.

At the beginning of July 2019 the regional network of the bank is represented by head office and 22 branches in 9 oblasts of Ukraine. The bank actively opens sales offices in shopping centers, which does not incur significant costs for a banking institution, as well as facilitates the attraction of new clients and the diversification of active and passive operations in the context of counterparties. In addition to large corporate clients, the Bank also provides services for the small business and individuals. At present, JSC «UNEX BANK» has focused on the development of the retail segment - during 2018 and the first half of 2019, the volume of retail loans increased by more than in 3.5 times. Accordingly, in the analyzed period the customer base increased mainly due to individuals.

Taking into account the measures of modernize its own material and technical base, the development and introduction of new services (purchase of equipment, software, etc.), the ratio of administrative costs to net operating income remains at a high level, which limits the performance of the institution and against the background of the formation of additional provisions for active operations causes a negative financial result for the first half of 2019 in the amount of (-) 4,5 million UAH. In turn, the availability of cheap resources in the form of enterprises' funds on current accounts provides an opportunity to increase net interest income from the placement of such resources in government securities and maintain the value of the efficiency ratio at a satisfactory level - almost 120% as of January-June 2019.

The affirming of the ratings of JSC «UNEX BANK» is due to sufficient capitalization ratios, satisfactory asset quality and a sufficient level of non-operating loan coverage with established provisions. Also, the agency notes a significant amount of sufficiently stable funds borrowed from companies recognized as affiliated with the bank; high liquidity ratios and sufficient balance of assets and liabilities by maturity. In turn, the concentration of active and passive operations by main counterparties. The ratings of a 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 in the real sector.

In order to conduct the analytical research, the materials provided by JSC «UNEX BANK» have been used, including: annual financial statements during the period 2016-2018 and the first half 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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