IBI-Rating has upgraded the credit rating of PJSCB «Lviv» to uaA- grade with «in development» outlook

IBI-Rating informs on upgrading of the credit rating of PJSCB «Lviv» to uaA- grade, with a change in the rating outlook to «in development». The rating of bank deposit reliability has been affirmed at «5» grade.

PJSCB «Lviv» has been working in the banking market since October 1991. Until June 2018, the ultimate Beneficiary of the institution was an individual, a citizen of Iceland Margeir Petursson. In September 2017, PJSCB «Lviv» submitted the necessary documentation to the National Bank of Ukraine for the approval of the investment of a new strategic shareholder - an independent Swiss Asset Management Company ResponsAbility Participations AG. At the end of June this year, the National Bank has agreed to acquire control over 51% of the Bank's shares by a Swiss company. Other 49% of the shares will continue to be owned by the existing shareholder Margeir Petursson. ResponsAbility Participations AG is a leading asset management company in the field of investment, which provides financing through borrowing and financing from its own resources in emerging economies. Shareholders of the company are a number of reputable institutions in the Swiss financial market.

During the analyzed period, the regional network of PJSCB «Lviv» was replenished with a new modern branch in Lviv. Thus, at present the bank is represented by the Head Office and 22 branches in 7 oblasts of Ukraine, including the capital region. According to the results of 2017, the financial result of the bank was negative, due to the formation of a significant amount of provision for loan losses. In turn, in the first quarter of this year PJSCB «Lviv» operated with net profit of almost UAH 2 million.

The upgrading of the ratings of PJSCB «Lviv» is conditioned by the fact that a new strategic investor has joined the shareholders, available financial support from the Bank’s owner, the positive dynamics of the main financial indicators, the acceptable diversification of the resource base in the context of financing sources, lenders and economic sectors. In addition, it should be noted the Institution's profitable activity, sufficient liquidity ratios and effectiveness of activities. At the same time, the Rating agency notes preservation of the concentration of the customer loan portfolio by major borrowers, as well the difficult situation in the economy which limiting the financial capacity of the population and enterprises of the real sector and adversely affecting on the level of confidence in banking institutions.

In order to conduct the analytical research, the materials provided by PJSCB «Lviv» have been used, including: annual financial statements for 2015-2017 and 3 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.

Finance department

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