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IBI-Rating has upgraded the credit rating of «CREDITWEST BANK» PJSC and changed the outlook to «stable»

09.07.2018
IBI-Rating informs on upgrading of the credit rating of «CREDITWEST BANK» PJSC uaAA+ grade with changing the outlook to «stable». Also, the rating of bank deposit reliability has been affirmed at «5+» grade (excellent reliability).

«CREDITWEST BANK» PJSC was registered by the National Bank of Ukraine in October 2006. The shareholder of the Bank is a foreign company «ALTINBAS HOLDING ANONIM SIRKETI» JSC (Turkey). The Bank is guided by the policy of continuous reinvestment of profits in the authorized capital, which contributes to the gradual growth of the market share and promotes high financial stability of the banking institution. As part of the planned long-term development programme, in previous year, the shareholder made an increase in the authorized capital by UAH 28.5 million, in February 2018 - by UAH 65 million (due to the conversion of subordinated debt) and in May this year by 37.5 million UAH. Accordingly, as at the beginning of June 2018, the authorized capital amounted to UAH 307.4 million. «CREDITWEST BANK» PJSC is highly profitable, performance ratios are maintained at a high level. In particular, the efficiency ratio of the Bank in 2017 and I quarter 2018 exceeded 200%, while net profit for the indicated periods amounted to UAH 39.8 million and UAH 13.4 million.

«CREDITWEST BANK» PJSC is classified in the foreign banking groups in accordance with the criteria for the allocation of banks to groups for 2018. As of the beginning of April 2018, among 84 banks of Ukraine, the Bank had 46 positions in assets, 57 in terms of population, 42 in the number of legal entities, 43 in terms of balance capital, and 36 in terms of profit. The Bank maintains a competitive product line in the corporate segment, primarily serving the trading partners of Turkish enterprises.

The upgrading of the long-term credit rating of «CREDITWEST BANK» PJSC with a «stable» outlook and an affirming of bank deposit reliability rating is due to the increase in the authorized capital, stable improvement of the main indicators of the banking institution's operations, maintaining high liquidity and capitalization of the financial institution, and the bank's membership in the Turkish financial-industrial group Altinbas, which specializes in precious metals, energy, logistics, finance, real estate and education. The Bank demonstrates profitable activity and sufficient performance indicators. At the same time, the concentration of the resource base and loan portfolio is maintained in the context of key counterparties, which increases the institution's sensitivity to liquidity and credit risks. Also, the ratings of a banking institution are vulnerable of difficult situation in the economy, which limits the financial capacity of the population and enterprises of the real sector and adversely affects the level of confidence in banking institutions.

In order to carry out the analytical research the materials obtained from «CREDITWEST BANK» PJSC have been used, including: financial statements for 2015-2017 and 5 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
For more information please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua