IBI-Rating has affirmed the credit rating of JSC «CRYSTALBANK» at uaAA– grade

IBI-Rating informs on affirming of the long-term credit rating of JSC «CRYSTALBANK» at uaAA– grade, the outlook is «evolving». The Rating agency also affirmed the rating of bank deposit reliability of JSC «CRYSTALBANK» at «5» grade (excellent reliability).

JOINT-STOCK COMPANY «CRYSTALBANK» is the first bank in Ukraine created by Deposit Guarantee Fund with the status of «Transition Bank». The bank is the assignee of PJSC «TERRA BANK», which was declared insolvent in August 2014. In March 2015, the bank lost the status of a «Transition Bank» and received a full banking license to provide all banking services for legal entities and individuals within the current legislation. Presently, a banking institution belongs to the group of banks with private capital in accordance with the criteria for the allocation of banks into groups approved by the NBU. The shareholders are three individuals, residents of Ukraine.

Over the past three years, the bank's market share has noticeably increased - following the results of the first half of 2020, among 75 banking institutions of Ukraine JSC «CRYSTALBANK» ranked 40ty position by the size of assets and individual deposits; 31st - by corporate deposits; 59th - by balance capital. Currently, the bank is actively developing cooperation with the population, providing, in particular, mortgage lending services, which helps to improve the diversification of active operations in terms of counterparties. JSC «CRYSTALBANK» is gradually increasing its presence in the market - during the first half of 2020 the regional network was increased by 1 branch (in Lvivska oblast). Accordingly, as of July 1, 2020, the regional network of the institution is represented by the head office in Kyiv, as well as 29 branches in nine oblasts of Ukraine.

The bank has a sufficient margin of deviation by most prudentials. In particular, the actual values of the LCR liquidity ratio for all currencies and in foreign currency amounts to 209% and 254% respectively (with a minimum of 100% required), indicating a high level of resistance to short-term liquidity shocks. The bank's operation activity over the past few years have been profitable. In turn, taking into account the formation of additional provisions in the first half of 2020 (in an amount over UAH 11 million), the net financial result of the institution for this period was negative. The loss of JSC JSC «CRYSTALBANK» for January-June of the current year amounted to UAH 4.1 million. At the same time, net operating income shows a relatively stable dynamic, which helps to keep the value of the efficiency of the banking institution at an acceptable level - almost 120% in the first half of 2020.

Affirming of credit rating grade of JSC «CRYSTALBANK» is due to sufficient capitalization indicators and the availability of financial support from shareholders; a low level of problematic debt in the structure of working assets; a gradual decrease in the concentration of credit and deposit portfolios by major counterparties; high liquidity ratios, as well as sufficient performance indicators. In turn, the structure of liabilities retains a significant amount of demand deposits, which increases the sensitivity to liquidity risk. At the same time, the bank has a significant amount of sufficiently stable funds, attracted by companies that are recognized as related in accordance with the requirements of the NBU regulations. The ratings of the institution are also affected by the increasing sensitivity of the banking system of Ukraine to operational and credit risks, due to the deteriorating epidemiological situation in the country, as well as the imposed of economic and administrative restrictions on entities and the population.

In order to conduct the analytical research, the materials provided by JSC «CRYSTALBANK» have been used, including: financial statements for 2017-2019 years and the first half of 2020, target 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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