IBI-Rating has upgraded the credit rating of JSC «CRYSTALBANK»

IBI-Rating informs on upgrading of the long-term credit rating of JSC «CRYSTALBANK» to uaAA+ grade with «evolving» outlook and keeping the rating on the Credit Watch List. The Rating agency also affirmed the rating of bank deposit reliability of JSC «CRYSTALBANK» at «5» grade (excellent reliability).

JOINT-STOCK COMPANY «CRYSTALBANK» belongs to the privately-owned banks group according to the criteria for segregation banks to groups approved by the National Bank of Ukraine. The bank's shareholders are three resident individuals of Ukraine. The bank's market share has remained stable in recent years - in the first 9 months of 2023, among 63 banking institutions in Ukraine, JSC «CRYSTALBANK» ranked 44 in terms of assets; 38 – in terms of corporate deposits; as well as 41 – in terms of retail deposits, balance sheet capital and financial results. As of the beginning of October 2023, the regional network of JSC «CRYSTALBANK» was represented by the head office in Kyiv and 26 branches in 9 regions of Ukraine. In October-November of this year, as part of the strategy of expanding the network of branches of JSC «CRYSTALBANK», 12 more branches were opened.

The regulatory capital of the Bank as of 01.10.2023 complies with the requirements of the current legislation and amounts to UAH 392 million. The institution has sufficient deviations reserves for most of the economic norms, including the regulatory capital adequacy ratio which as of 01.10.2023 was above 43% (with a minimum required of 10%), and the actual values of the liquidity coverage ratio (LCR) for all currencies and foreign currency were 146% and 197%, respectively, indicating a high level of Bank's resilience to short-term liquidity shocks. The actual value of the net stable funding ratio (NSFR) as of 01.10.2022 was 176% which significantly exceeds the minimum required value and indicates the availability of sufficient long-term funding.

The quality of the institution's working assets is estimated as good. The share of overdue loans and accrued income in the analyzed period decreased to 10%, and the level of its coverage by provisions increased to 150%. It is worth noting that the share of term deposits in the deposit portfolio has increased, which indicates active efforts to reduce dependence on individual creditors in order to increase financial flexibility. Also, the Bank got rid of expensive resources of the regulator ahead of schedule, which had a positive impact on institution’s efficiency.

The Bank's operations have been profitable over the past few years. The net profit of JSC «CRYSTALBANK» for the first 9 months of 2023 amounted to UAH 38.1 million (against UAH 21.3 million for the first 9 months of 2022). The net operating income demonstrates growing dynamics, despite the deterioration of the operating environment during martial law. Accordingly, the value of the efficiency ratio of the banking institution remains at a good level - 140% in January-September 2023.

The upgrading of JSC «CRYSTALBANK» credit rating is based on: sufficient indicators of capitalization and the presence of financial support from shareholders; high level of liquidity against the background of early repayment of all borrowings from the regulator; low level of problem debt in the structure of working assets; active development of the regional network and card business; significant volume of assets in the form of risk-free investments in government securities; as well as sufficient performance indicators and long-term profitability of the institution. At the same time, the agency notes the preservation of insufficient nominal balance of assets and liabilities by maturity (which is to some extent offset by significant balances of conditionally stable resources), a gradual decrease in the concentration of loan and deposit portfolios by major counterparties, as well as the sensitivity of the banking system of Ukraine to operational and credit risks, which is caused by prolonged military actions on the territory of Ukraine due to aggression from the Russian Federation, as well as deterioration of operating conditions and uncertainty regarding the prospects of economic development.

In order to conduct the analytical research, the materials provided by JSC «CRYSTALBANK» have been used, including: financial statements for 2020-2022 years and 9 months of 2023, 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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