IBI-Rating has upgraded the credit rating of OKCI BANK, JSC to uaA- grade

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

OKCI BANK, JSC has been operating in the financial market since 1991 and is belongs to the group of banks with private capital, according criteria for allocating banks to groups. Beneficiary owners of the banking institution are 2 private individuals - citizens of Ukraine. At the end of 2018, the shareholder placed funds on conditions by subordinated debt in the amountin of USD 1 million. In May 2019 the Bank obtained permission from the regulator to take into account these funds in the calculation of regulatory capital. Accordingly, as at the beginning of June, the regulatory capital of OKSI BANK, JSC amounted to UAH 226.7 million, while the capital adequacy ratio (N2) increased to 68%. 

Liquidity indicators are maintained at a high level - as of April 1, 2019, the liquidity ratios (H4, H5, H6) significantly exceeded the minimum required and were respectively: 182%, 98% and 128%. It should also be noted that OKCI BANK, JSC with a substantial margin fulfills the requirements regarding the value of the liquidity coverage ratio (LCR), which has been established by the regulator since the beginning of 2019.

OKCI BANK, JSC is focused mainly on the population and SMEs, and its regional network covers 5 oblasts (Lvivska, Zakarpatska, Kharkivska, Khmelnytska and Kyivska). In addition, the institution actively develops remote customer service and card business. Taking into account the reduction of interest income against the backdrop of growing administrative costs, as well as the formation of additional provisions for active operations, the net financial result at the end of the year was negative (UAH -2.5 million). In turn, net profit in the first quarter of 2019 was amounted to UAH 0.4 million.

The upgrading of the credit rating of OKCI BANK, JSC is due to financial support from owners, sufficient capitalization indicators, high indicators of liquidity and balance of assets and liabilities by maturity. Also, the Rating agency notes an acceptable indicators of the quality of working assets. At the same time, the concentration of the loan portfolio and the deposit base by key customers remains significant, which increases the sensitivity of institution to liquidity risk. 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 OKCI BANK, JSC have been used, including: annual financial statements for 2016–2018 and January-May of 2019, as well as 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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