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PRESS-RELEASE: RA «Expert-Rating» confirms the credit rating of JSC «BROKBUSINESSBANK» at the level uaAA according to the 2011


27/02/2012

PRESS-RELEASE

(Translation from Russian)

 

RA «Expert-Rating» confirms the credit rating of JSC «BROKBUSINESSBANK» at the level uaAA according to the 2011

 

February 27, 2012 RA «Expert-Rating» confirms the credit rating of JSC «BROKBUSINESSBANK» at the level uaAA according to the national scale. When confirming the credit rating, the Agency was guided by the results of the Bank’s activity for 2011 (table).

Table

Key performance indicators of JSC «BROKBUSINESSBANK» (th. UAH, %)

Indicator

2011

(01.01.2012)

2010

(01.01.2011)

Change, th. UAH, p.p.

Growth rate, %

Total assets

18 940 271

15 825 643

3 114 628

19,68

Cash and cash equivalents

1 856 352

1 762 684

93 668

5,31

Clients’ credits and debts

13 510 334

12 481 990

1 028 344

8,24

Loans provisions

(728 173)

(866 852)

(138 679)

(16,00)

Total liabilities

16 558 395

13 458 735

3 099 660

23,03

Commitments to other banks

3 579 849

3 105 635

474 214

15,27

Funds of legal entities

4 262 600

3 168 862

1 093 738

34,52

Funds of individuals

7 328 099

6 000 058

1 328 041

22,13

Shareholders’ equity

2 381 875

2 366 908

14 967

0,63

Net interest income

198 748

420 109

(221 361)

(52,69)

Net profit

22 848

52 807

(29 959)

(56,73)

Loans provisions/Loan portfolio ratio

5,39%

6,94%

(1,56 p.p.)

-

Equity/Assets

12,58%

14,96%

(2,38 p.p.)

-

ROE

0,96%

2,23%

(1,27 p.p.)

-

Source: data of NBU, calculations by RA «Expert-Rating»

 

When confirming the credit rating of the Bank, the Agency was based on the following conclusions:

1. The Bank’s assets have reached UAH 18,9 bn. following the results of 2011, that is by UAH 3,1 bn. more, than following the results of 2010. Therefore, The growth rate of this indicator has constituted 19,68% for the reporting year. The average growth rate of assets of the Ukrainian banking system has constituted 11,91% for the same period, and the growth rate of the banks’ assets of the first group in NBU ranking, which JSC «BROKBUSINESSBANK» belongs to, has constituted 12,19%. The Bank’s liquid assets have also increased and have amounted to UAH 1,86 bn. as of 01.01.2012, that is by 5,31% more than on 01.01.2011. The growth in the Bank’s loan portfolio has constituted UAH 1,03 bn. or 8,24% for the 2011, that correspond to the market trends as a whole, the average growth rate of the loan portfolio of Ukrainian banks has constituted 8,44% for the given period, and the banks of the first group have increased its portfolios by 8,84%. Along with increasing the volume of lending, loans of provisions, formed by the Bank, have declined by 16% for the analyzed period, that have resulted in decreasing of the loans provisions/loan portfolio ratio by 1,56 p.p. – from 6,94% up to 5,39%, that indirectly indicates the decline of credit risks. For the comparison – the market averages of this indicator on the banking system as a whole (18,16%), as well as on the first group of banks (18,94%) remain to be at the high level.

2. The Bank’s liabilities have increased by UAH 3,1 bn. or by 23,03% over the analyzed period and have constituted UAH 16,6 bn. following the results of 2011. Therefore, the growth rate of the Bank’s resource base has also exceeded the market average, which has constituted 11,74% for the same period. The Bank has actively attracted the funds of individuals as well as the funds of legal entities, which have increased by UAH 1,3 bn. (or by 22,13%) and by UAH 1,1 bn. (or by 34,52%) respectively according to the results of 2011. The largest proportion in the structure of funds, raised by the Bank, has belonged to the funds of individuals, which have accounted for 44,26% as of 01.01.2012, the proportion of funds of legal entities has corresponded to 25,74%, the proportion of resources, attracted in the interbank market, has accounted for 21,62% that indicate a good level of the resource base diversification. 

3. The Bank has finished the 2011 year with net profit of UAH 22,8 mln. that is by 56,73% less, than following the results of 2010. The key factor of declining the profit has become the decrease in net interest income by 52,69%, because the pressure of reserves has reduced on the Bank’s financial result during the analyzed period. At the same time, the fact of profitable activity under conditions, that the total financial result of the Ukrainian banking system remains negative, enables to conclude that the 2011 year has been relatively successful for the Bank.

4. The Bank’s shareholders’ equity has constituted UAH 2,4 bn. according to the results of 2011, that is by 0,63% or by UAH 15 mln. more, than following the results of 2010. The capital adequacy of the Bank has equaled to 12,58% as of 01.01.2012, that is by 2,38 p.p. less, than according to the results of the same period of the last year, and has been caused by the outpacing rates of the asset rise in comparison with the growth of equity. At the same time, this indicator is at the adequate level that enables the Bank to maintain a sufficient reserve of solvency.

Therefore, the analysis of key performance indicators of JSC «BROKBUSINESSBANK» indicates a good dynamics of its development – the growth rates of the Bank’s assets and liabilities have exceeded the market averages following the results of 2011 in comparison to the results of 2010. The Bank succeeds in maintaining a good quality of the loan portfolio, which is indicated by the process of the Bank’s increasing in volumes of lending occurs against the decrease in loans provisions. The efficiency of the Bank’s activity is confirmed by the positive financial result under conditions of unprofitability of the banking system. Maintaining the capital adequacy at the adequate level indicates the solvency and the stability of the Bank that enable it to perform its commitments to depositors and other counterparties.  

 

Analytical service of RA «Expert-Rating»

Full confirmation of JSC «BROKBUSINESSBANK» (english version) - 27.02.2012

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