IBI-Rating has upgraded the credit rating of JSC «CRYSTALBANK» to uaAA– grade with a «stable» outlook

IBI-Rating informs on upgrading of the long-term credit rating of JSC «CRYSTALBANK» to uaAA– grade with a «stable» outlook. The Rating agency also determined 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 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 - by the results of 2019, among 75 banking institutions of Ukraine JSC «CRYSTALBANK» ranked 46th position by the size of assets and individual deposits; 34th - by corporate deposits; 55th - by balance capital and 61st - in terms by financial results. Now 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 the context of by most prudentials. During the ІІnd half of 2019, the regional network of the institution was expanded by 2 branches (one each in Dnipropetrovsk and Lviv oblasts). Accordingly, as of 01.01.2020 the regional network of JSC «CRYSTALBANK» is represented by the Head Office in Kyiv, as well as 28 branches in 9 oblasts of Ukraine.

The bank has a sufficient margin of deviation by most prudentials, in particular, the regulatory capital adequacy ratio (H2) at the beginning of January 2020 was over 41% (with a minimum of 10% required), and the actual values of the LCR liquidity ratio for all currencies and in foreign currency amounts to 181% and 245% respectively (with a minimum of 100% required), indicating a high level of resistance to short-term liquidity shocks. The performance indicators of the banking institution in the analyzed period was maintained at a sufficient level and testified to the acceptable ability of JSC «CRYSTALBANK» to generate capital at the expense of its operating results, provided the good quality of the profitable assets was maintained. In particular, according to the results of last year's the level of administrative expenses coverage with net operating income (efficiency ratio) exceeded 120%. The activity of JSC «CRYSTALBANK» in recent years remains profitable - according to the results of 2019 the net profit of the institution amounted to UAH 7 million.

The upgrading of the 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 and profitable operating activities. 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 institution's ratings are also influenced by the sensitivity of the banking system to operational risks, which is due to transformational processes in the economy, as well as by the instability of the legislative field.

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