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IBI-Rating has renewed the ratings of JSC «BANK CREDIT DNIPRO»
28.09.2023
Rating agency IBI-Rating informs on the renewal of credit rating of JSC «BANK CREDIT DNIPRO» at uaAAA grade with «evolving» outlook. The rating of bank deposit reliability has been renewed at «5» grade (excellent reliability). The credit rating has been kept on the CreditWatch List due to the martial law imposed in connection with the invasion of russian troops in Ukraine, which has a significant negative impact on the country's economic condition and financial stability.
JSC «BANK CREDIT DNIPRO» has been operating in the country's financial market since 1993 and belongs to the privately-owned banks group in accordance with the criteria for dividing banks into groups. According to the results of 6 months of 2023, among 65 banks of Ukraine JSC «BANK CREDIT DNIPRO» ranked 20th in terms of assets, 19th in terms of corporate customer accounts and balance sheet capital, and 18th in terms of funds raised from the public and the amount of financial result. The sole shareholder of the banking institution is Oleksandr Yaroslavsky, the owner of the DCH group. According to the Rating agency, joining the bank to one of the largest Ukrainian business groups DCH creates a solid foundation and additional opportunities for further development of JSC «BANK CREDIT DNIPRO».
In the analyzed period, the Bank's profitability indicators remained high and had a positive trend, despite the difficult operating conditions during the martial law period. Thus, according to the results of 6 months of 2023, the net operating income amounted to UAH 648.7 million, which contributed to obtaining a net profit in the amount of UAH 311.9 million, as well as maintaining the value of the activity efficiency ratio at a high level - more than 180%.
The growth of the loan portfolio in the analyzed period is due to the active development of lending programs, especially in the corporate segment. Together with the expansion of the working loan portfolio, the Bank's activities in the settlement of problem debt, write-off of debt at the expense of the formed provisions allow to keep the share of problem debt in the net loan portfolio (taking into account the formed provisions) at a low level - as of July 1, 2023, the corresponding indicator was 3.1%.
The Bank has a high level of liquidity with an upward trend and significant margin of compliance with the requirements for the liquidity coverage ratio (LCR) - as of the beginning of July 2023, the actual value of the LCR for all currencies and foreign currency was 208% and 179% respectively (with a minimum required value of 100%), which indicates a high level of the Bank's resilience to short-term liquidity shocks. The actual value of the net stable funding ratio (NSFR) as of 01.07.2023 amounted to 195%, which exceeds the minimum required value by a significant margin and indicates the availability of a sufficient level of long-term funding. Due to the positive financial result, the Bank increased its regulatory capital to the level of UAH 1.8 billion, and the value of the capital adequacy ratio R2 increased to 29% as of July 01, 2023 (with the required 10%).
The renewed credit rating of JSC «BANK CREDIT DNIPRO» at the specified level is due to the maintenance of high performance indicators and their improvement, profitable current activities, maintenance of capitalization indicators at a sufficient level, acceptable diversification of the resource base, growth of the working loan portfolio, maintenance of provisions at a sufficient level, a low level of the share of problem debt in the net loan portfolio, a significant amount highly liquid assets and the improvement of liquidity standards, as well as the presence of financial support from the shareholder of the banking institution. At the same time, the Rating agency notes insufficient nominal balance of assets and liabilities by maturity, sensitivity of the banking system to operational and credit risks, due to the ongoing military operations in Ukraine due to the aggression of the Russian Federation, as well as deterioration of the operating environment and uncertainty about the prospects for economic development.
In order to conduct the analytical research the materials provided by JSC «BANK CREDIT DNIPRO» have been used, including: annual financial statements for 2020-2022 and 6 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.
Finance Department
For more information, please contact us:
Press service of IBI-Rating
(044) 362-90-84
press@ibi.com.ua
JSC «BANK CREDIT DNIPRO» has been operating in the country's financial market since 1993 and belongs to the privately-owned banks group in accordance with the criteria for dividing banks into groups. According to the results of 6 months of 2023, among 65 banks of Ukraine JSC «BANK CREDIT DNIPRO» ranked 20th in terms of assets, 19th in terms of corporate customer accounts and balance sheet capital, and 18th in terms of funds raised from the public and the amount of financial result. The sole shareholder of the banking institution is Oleksandr Yaroslavsky, the owner of the DCH group. According to the Rating agency, joining the bank to one of the largest Ukrainian business groups DCH creates a solid foundation and additional opportunities for further development of JSC «BANK CREDIT DNIPRO».
In the analyzed period, the Bank's profitability indicators remained high and had a positive trend, despite the difficult operating conditions during the martial law period. Thus, according to the results of 6 months of 2023, the net operating income amounted to UAH 648.7 million, which contributed to obtaining a net profit in the amount of UAH 311.9 million, as well as maintaining the value of the activity efficiency ratio at a high level - more than 180%.
The growth of the loan portfolio in the analyzed period is due to the active development of lending programs, especially in the corporate segment. Together with the expansion of the working loan portfolio, the Bank's activities in the settlement of problem debt, write-off of debt at the expense of the formed provisions allow to keep the share of problem debt in the net loan portfolio (taking into account the formed provisions) at a low level - as of July 1, 2023, the corresponding indicator was 3.1%.
The Bank has a high level of liquidity with an upward trend and significant margin of compliance with the requirements for the liquidity coverage ratio (LCR) - as of the beginning of July 2023, the actual value of the LCR for all currencies and foreign currency was 208% and 179% respectively (with a minimum required value of 100%), which indicates a high level of the Bank's resilience to short-term liquidity shocks. The actual value of the net stable funding ratio (NSFR) as of 01.07.2023 amounted to 195%, which exceeds the minimum required value by a significant margin and indicates the availability of a sufficient level of long-term funding. Due to the positive financial result, the Bank increased its regulatory capital to the level of UAH 1.8 billion, and the value of the capital adequacy ratio R2 increased to 29% as of July 01, 2023 (with the required 10%).
The renewed credit rating of JSC «BANK CREDIT DNIPRO» at the specified level is due to the maintenance of high performance indicators and their improvement, profitable current activities, maintenance of capitalization indicators at a sufficient level, acceptable diversification of the resource base, growth of the working loan portfolio, maintenance of provisions at a sufficient level, a low level of the share of problem debt in the net loan portfolio, a significant amount highly liquid assets and the improvement of liquidity standards, as well as the presence of financial support from the shareholder of the banking institution. At the same time, the Rating agency notes insufficient nominal balance of assets and liabilities by maturity, sensitivity of the banking system to operational and credit risks, due to the ongoing military operations in Ukraine due to the aggression of the Russian Federation, as well as deterioration of the operating environment and uncertainty about the prospects for economic development.
In order to conduct the analytical research the materials provided by JSC «BANK CREDIT DNIPRO» have been used, including: annual financial statements for 2020-2022 and 6 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.
Finance Department
For more information, please contact us:
Press service of IBI-Rating
(044) 362-90-84
press@ibi.com.ua