IBI-Rating has affirmed the credit rating of JSC «CREDITWEST BANK» at uaAA+ grade, with a «stable» outlook

IBI-Rating informs on affirming of the long-term credit rating of JSC «CREDITWEST BANK» at uaAA+ grade with a «stable» outlook. Also, the rating of bank deposit reliability has been affirmed at «5+» grade (excellent reliability).

JSC «CREDITWEST BANK» was registered by the National Bank of Ukraine in October 2006. The shareholder of the Bank is a foreign company JSC «ALTINBAS HOLDING ANONIM SIRKETI» (Turkey). The Bank is guided by the policy of continuous reinvestment of profits in the authorized capital, which contributes to the gradual growth of the market share and promotes high financial stability of the banking institution. As part of the planned long-term development programme in 2017 the shareholder made an increase in the authorized capital by UAH 28.5 million, in February 2018 - by UAH 65 million (due to the conversion of subordinated debt) and in May 2018 by UAH 37.5 million. Accordingly, as at the beginning of October 2018, the authorized capital amounted to UAH 307.4 million. JSC «CREDITWEST BANK» is highly profitable, performance ratios are maintained at a high level. In particular, the efficiency ratio of the Bank by 9 months of 220%, while net profit for the indicated period amounted to UAH 43.3 million.

JSC «CREDITWEST BANK» is classified in the foreign banking groups in accordance with the criteria for the allocation of banks to groups for 2018. As of the beginning of October 2018, among 81 banks of Ukraine, the Bank had 44 positions by size of assets and funds of legal entities, 55 - in terms by the size of the population's funds, 40 - in terms by the size of balance capital, and 30 - in terms by the size of profit. The Bank maintains a competitive product line in the corporate segment, primarily serving the trading partners of Turkish enterprises.

The affirmed ratings of JSC «CREDITWEST BANK» is due to maintaining high liquidity and capitalization of the financial institution, and the bank's membership in the Turkish financial-industrial group Altinbas, which specializes in precious metals, energy, logistics, finance, real estate and education. The Bank demonstrates profitable activity and sufficient performance indicators. At the same time, the concentration of the resource base and loan portfolio is maintained in the context of key counterparties, which increases the institution's sensitivity to liquidity and credit risks. In addition, the ratings of the banking institution are affected by the preservation of the high sensitivity of the banking system to operational risks, which is 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 carry out the analytical research the materials obtained from «CREDITWEST BANK» PJSC have been used, including: financial statements for 2015-2017 and 9 months of 2018, target performance indicators, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

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