PRESS-RELEASE

(Translation from Russian)

The credit rating of PJSC «Kreditprombank» has been improved up to uaA-

May 28, 2012 RA «Expert-Rating» has decided to improve the credit rating of PJSC «Kreditprombank» up to the level uaA- according to the national scale. The borrower with rating uaA- is characterized by a high solvency in comparison with other Ukrainian borrowers. Making decision of improving the credit rating according to the national scale, the Agency was guided by key results of the Bank’s activity in the Q1 of 2012.

Table 1

Key indicators of PJSC «Kreditprombank», th. UAH, p.p.,%

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

1. The analysis of key performance indicators of PJSC «Kreditprombank» has demonstrated the strengthen of the Bank’s financial stability in the Q1 of 2012 compared to the Q1 of 2011, which has resulted from a significant increase in authorized capital (by UAH 797,6 mln or by 43,39%), having reached to UAH 2,636 bn as of 01.04.2012. The ratio between shareholders’ equity and assets of the Bank has increased from 12,51% as of 01.04.2011 up to 17,23% as of 01.04.2012 (with the average of the banking system 14,99%) that has resulted in the increase in capital and in the reduction of assets by 4,72 p.p. The Bank fully performs the NBU requirements of complying the capital norms: as of 01.04.2012 the norm of regulatory capital adequacy (N2) has amounted to 13,36% (the required norm is not less 10%), and the norm of the ratio of regulatory capital to assets (N3) has equalled to 11,02% (with the norm of not less 9%).

2. As of the end of the Q1 of 2012 the Bank’s liabilities have decreased by 18,38% compared to the same period of 2011, including liabilities in foreign currency have reduced by 21,14% or by UAH 1,418 bn, funds of banks and legal entities have decreased by 23,42% and by 7,68%, respectively. At the same time, funds of individuals have increased by 3,11%.

3. The analysis of quality indicators of the Bank’s loan portfolio enables to estimate its level as satisfactory. As of 01.04.2012 loans provisions, formed by the Bank, have amounted to UAH 2,313 bn that is by 40,23% more, than as of 01.04.2011. The ratio of loans provisions to customer credits and debt has increased by 8,56 p.p. in the period from 01.04.2011 to 01.04.2012: from 14,66% up to 23,22%, with the average of the banking system – 21,45%. The Bank performs the norm of large loan risks (N8) and the norm of the maximum amount of loans, guarantees, sureties provided to insiders (N10) with excess: as of 01.04.2012 N8 has amounted to 416,91% (with the norm of not more 800%), and N10 – 0,20% (with the required norm of not more 30%).

4. Liquidity indicators of the Bank are at the acceptable level. As of 01.04.2012 the norm of instant liquidity of the Bank (N4) has amounted to 38,88% (with the required norm of not less 20%), the norm of current liquidity (N5) has amounted to 52,43% (with the minimal norm of not less 40%), and the norm of short-term liquidity (N6) – 74,61% (with the required norm of not less 60%). Net profit of the Bank has amounted to UAH 3,102 mln in the Q1 of 2012 that is by 367,94% more than in the Q1 of 2011. The key factor of the increase in the Bank’s profit has become the increase in net commission income by 20,32% or by UAH 4,7 mln in the Q1 of 2012 compared to the Q1 of 2011. At the same time, net interest income of the Bank has reduced by 32,66% or by UAH 39,2 mln that has resulted in the increase of the ratio between net commission income and net interest income of the Bank: from 19,26% as of 01.04.2011 up to 34,41% as of 01.04.2012. In the Agency’s opinion, the increase in net commission income of the Bank will have a stabilizing impact on the dynamics of its incomes.

Therefore, the analysis of the results in the Q1 of 2012 indicates the improvement in profitability indicators of activity. The quality of the Bank’s loan portfolio can be estimated as satisfactory. The Bank’s indicators of liquidity and capital adequacy are at an adequate level that enables the bank to perform its undertaken liabilities in full. The Bank demonstrates positive results the third consecutive quarter, which has become the reason for revising its credit rating towards to increase.

Analytical service of RA «Expert-Rating»

Confirmation of PJSC «Kreditprombank» (english version) - 28.05.2012