PRESS-RELEASE: The credit rating of PJSC «MEGABANK» has been improved up to the level uaA
24/05/2012
PRESS-RELEASE
(Translation from Russian)
The credit rating of PJSC«MEGABANK» has been improved up to the leveluaA
May 23, 2012 RA «Expert-Rating» has decided to improve the credit rating of PJSC«MEGABANK» and the bank bonds of Series G, H, I 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 about assigning the credit rating according to the national scale, the Agency was guided by the key results of the Bank’s activity in the Q1 of 2012.
Table 1
Key indicators ofPJSC«MEGABANK», th. UAH, p.p.,%
Indicators
I quarter of 2012
(01.04.2012)
I quarter of 2011
(01.04.2011)
Change
Growth rate
Shareholders’ equity
658 217
637 353
20 864
3,27%
Authorized capital
500 000
500 000
0
0,00%
Regulatory capital (N1)
739 230
771 255
-32 025
-4,15%
Shareholders’ equity/assets ratio, %
14,37%
18,26%
-3,89 p.p.
-
Adequacy of regulatory capital (N2), %
18,90%
31,22%
-12,32 p.p.
-
Regulatory capital/total assets ratio (N3)
15,16%
21,19%
-6,03 p.p.
-
Total liabilities
4 015 269
2 853 354
1 161 915
40,72%
Including liabilities in foreign currency
2 311 053
1 524 706
786 347
51,57%
Funds of banks
668 031
439 204
228 827
52,10%
Funds of individuals
1 446 475
1 058 149
388 326
36,70%
Funds of legal entities
1 041 955
766 576
275 379
35,92%
Total assets
4 673 486
3 490 707
1 182 779
33,88%
Liquid assets (Cash and cash equivalents + Trading securities + Funds in other banks)
695 806
447 084
248 722
55,63%
Customercreditsanddebt
3 387 575
2 769 328
618 247
22,32%
includingcustomercreditsanddebt in foreign currency
1 653 072
1 205 215
447 857
37,16%
Loan provisions
203 177
147 676
55 501
37,58%
Loanprovisions/customercreditsanddebt
6,00%
5,33%
0,67 p.p.
-
Norm of large credit risks (N8)
189,18%
89,93%
99,25 p.p.
-
Norm of the maximum total amount of loans, guarantees and sureties issued to insiders (N10)
9,53%
6,92%
2,61 p.p.
-
Liquidassets/liabilitiesratio
17,33%
15,67%
1,66p.p.
-
Instant liquidity (N4)
45,57%
42,36%
3,21 p.p.
-
Current liquidity (N5)
72,23%
89,43%
-17,20 p.p.
-
Short-term liquidity (N6)
105,18%
115,74%
-10,56 p.p.
-
ROE
0,29%
0,10%
0,19p.p.
-
ROA
0,04%
0,02%
0,02 p.p.
-
Net interest income
28 549
29 250
-701
-2,40%
Net commission income
33 525
29 431
4 094
13,91%
Net commission income/net interest income ratio
117,43%
100,62%
16,81 p.p.
-
Net profit
1 922
645
1 277
197,98%
Source: Data of PJSC «MEGABANK», calculations by RA «Expert-Rating»
1. In the period from 01.04.2011 to 01.04.2012 the bank’s assets have increased by 33,88%, liabilities – by 40,72%, shareholders’ equity – by 3,27%. At the same time, the average growth rates of assets and liabilities of the Ukrainian banking system have exceeded 10% in the same period. The loan portfolio of the bank has increased by 22,32% and as of 01.04.2012 it has amounted to UAH 3,388 bn, while the total loan portfolio of the Ukrainian banks has reduced by 12,77% in the same period. In the Agency’s opinion, the growth rates of key performance indicators, demonstrated by the bank in the given period, have enabled it to strengthen its positions in the banking system of Ukraine – particularly, MEGABANK has risen by 5 steps up in the general ranking of banks according to NBU.
2. The bank has actively increased its resource base during the analyzed period. Thus, funds of individuals have increased by 36,70% and as of 01.04.2012 have amounted to UAH 1,042 bn, funds of banks have increased by 52,10% having amounted to UAH 668 mln. Excess capitalization and need to increase the efficiency of shareholders’ equity use have enabled the bank to increase assets by the higher paces, which has resulted in a slight decrease of capital adequacy indicators. At the same time, the capital norms of the bank are in the ranges set by NBU and exceed the market average indicators. In the period from 01.04.2011 to 01.04.2012 the bank’s norm of regulatory capital adequacy (N2) has reduced by 12,32 p.p. (from 31,22% down to 18,90%, with the market average – «17,9%»), the norm of the ratio of regulatory capital to assets (N3) has decreased by 6,03 p.p. (from 21,19% down to 15,16%, with the average of the system – «14,5%»).
3. A low indicator of the ratio of loan provisions to customer debt, which has amounted to 6% as of 01.04.2012 (while the average of the banking system – 21,45%), indirectly indicates that the level of the portfolio loan risks remains relatively low. The Agency also emphasizes the bank’s excess performing the norm of large credit risks (N8) and the norm of maximum amount of loans, guarantees and sureties issued to insiders (N10): as of 01.04.2012 N8 has amounted to 189,18% (the required indicator – «not more 800%»), and N10 has amounted to 9,53% (the required indicator – «not more 30%»). Excess performance of N8 indicates a good diversification level of the bank’s loan portfolio.
4. Liquidity indicators of the bank are at a high level. Thus, as of 01.04.2012 the norm of instant liquidity (N4) has amounted to 45,57% (the requiring indicator is «not less 20%»), the norm of current liquidity (N5) has amounted to 72,23% (the minimal indicator is «not less 40%»), and the norm of short-term liquidity (N6) has reached 105,18% (the needed indicator is «not less 60%»). As of 01.04.2012 liquid assets have amounted to UAH 696 mln that is by 55,63% more, than as of 01.04.2011. At the same time, net profit of the bank has increased almost in 3 times and has reached UAH 1,9 mln in the Q1 of 2012 in comparison with the same period of 2011. One of the key factors, influenced the increase in the bank’s profit, has become the increase in net commission profit by 13,91% in the Q1 of 2012 compared to the same period of previous year. At the same time, the larger part of income is generated by the bank due to commission payments, as indicated, in particular, by the ratio between net commission income and net interest income, which has amounted to 117,43% following the results of the Q1.
Therefore, the analysis of key performance indicators of PJSC «MEGABANK» has demonstrated a good dynamics of its development following the results of the Q1 of 2012. The growth rates of the bank’s assets and liabilities have significantly exceeded the market average indicators. The result of the increase in income assets and the relatively low level of the portfolio loan risks has become a considerable increase in the bank’s profit. At the same time, the bank performs all the liquidity and solvency norms set by the regulator with excess that enables it to fully meet its liabilities to depositors and other counterparties.