News feed

Інформаційні партнери:

 

 

 

 

 


PRESS-RELEASE: The credit rating of PJSC «MEGABANK» is confirmed at the level uaA


12/09/2012

PRESS-RELEASE

(Translation from Russian)

The credit rating of PJSC «MEGABANK»

is confirmed at the level uaA

 

August 22, 2012 RA «Expert-Rating» has decided to confirm the credit rating of PJSC «MEGABANK» and of the Bank’s bonds of Series G, H, I at 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 confirming the credit rating according to the national scale, the Agency was guided by key results of the Bank’s activity in the 1 half of 2012.

Table 1

Key balance sheet indicators of PJSC «MEGABANK» in the 1 half of 2012, th. UAH, %, p.p.

Indicators

 01.07.2012

 01.01.2012

Change

Growth rate, %

Shareholders’ equity

661 498

652 864

8 634

1,32%

Authorized capital

500 000

500 000

0

0,00%

Shareholders’ equity/Assets ratio, %

14,18%

14,37%

-0,19 p.p.

-

Total liabilities

4 002 795

3 888 863

113 932

2,93%

Including liabilities in foreign currency

2 238 383

2 169 683

68 700

3,17%

Funds of banks

471 698

487 711

-16 013

-3,28%

Funds of individuals

1 589 545

1 315 076

274 469

20,87%

Funds of legal entities

883 625

962 713

-79 088

-8,22%

Total assets

4 664 293

4 541 727

122 566

2,70%

Liquid assets (Cash and cash equivalents + Trading securities + Funds in other banks)

847 325

940 750

-93 425

-9,93%

Customer credits and debt

3 422 882

3 224 264

198 618

6,16%

Including customer credits and debt in foreign currency

1 427 091

1 437 715

-10 624

-0,74%

Loan provisions

(211 168)

(183 572)

27 596

15,03%

Loan provisions/ customer credits and debt ratio, %

6,17%

5,69%

0,48 p.p.

-

Securities (Securities for sale + Securities for redemption)

127 823

110 472

17 351

15,71%

Securities provision (for sale + for redemption)

(910)

(895)

15

1,68%

Liquid assets/Liabilities ratio, %

21,17%

24,19%

-3,02 p.p.

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

1. During the 6 months of 2012 the Bank’s assets have grown by UAH 122,6 mln or by 2,70%, having reached UAH 4,664 bn. The loan portfolio of the Bank has increased by UAH 198,6 mln or by 6,16% up to UAH 3,423 bn in the same period. At the same time, the largest part of Bank’s resources have been directed to lending legal entities, whose portfolio of credits has grown by 7,72% since the beginning of the year and has amounted to UAH 2,915 bn on 01.07.2012. Therefore, the Bank together with international financial institutions consistently implements the programs of corporate financing, in particular, the small and medium sized business. At the same time, credits and debt of individuals have reduced by 1,97%: from UAH 518,6 mln as of 01.01.2012 down to UAH 508,3 mln as of 01.07.2012.

2. In the period from 01.01.2012 to 01.07.2012 the Bank’s liabilities have increased by UAH 113,9 mln or by 2,93%. At the same time, the change of three key components of the Bank’s resource base has been in opposite directions. Thus, funds of individuals have increased by 20,87% or by UAH 274,5 mln, while funds of legal entities have reduced by 8,22% or by UAH 79,1 mln, and funds of banks have decreased by 3,28% or by UAH 16 mln. As of 01.07.2012 funds of individuals have remained to occupy the main proportion in the Bank’s liabilities – 39,71%, the proportion of funds of legal entities and funds of banks has accounted for 22,08% and 11,78%, respectively. Besides, the Bank actively raises funds from the international financial institutions in the long-term framework in order to implement the joint programs of lending the Ukrainian economics. Particularly, EFSE has opened the five-year credit line of USD 7 mln to PJSC «MEGABANK». Funds, raised by the Bank, will be used for lending the projects in the agrosector, as well as for lending the private entrepreneurs operating in agriculture. The Bank has been also provided with the credit of USD 15 mln for 5 years from the Netherland bank of development (FMO). Raised credit funds will be used to finance small and medium business.

3. As of the beginning of the second half of 2012 the shareholders’ equity of the Bank has amounted to UAH 661,5 mln that is by UAH 8,6 mln or by 1,32% more, than at the beginning of 2012. The increase in equity has occurred due to increasing the reserve and other funds of the Bank. Capital norms of the Bank (N1, N2, N3), despite some decrease, still exceed the average market indicators and demonstrate a high capitalization level of financial institution. Thus, as of 01.07.2012 the regulatory capital of the Bank has amounted to UAH 734,6 mln (the norm – not less UAH 120 mln), the norm of regulatory capital adequacy (N2) has amounted to 18,5% (the required norm – not less 10% and the average on the banking system – 17,98%), the norm of the ratio of regulatory capital to total assets (N3) has been at the level 15,06% (the norm indicator – not less 9% and the average indicator on the system – 14,58%).

Table 2

Key norms of PJSC «MEGABANK» in the 1 half of 2012

Norms

The norm set by NBU

01.07.2012

01.07.2011

Change, th. UAH, p.p.

The Bank’s norm

The average of the system

The Bank’s norm

The average of the system

Regulatory capital (N1), th. UAH

 Not less UAH 120 000 th.

734 559

-

751 559

-

-17 000

Regulatory capital adequacy (N2), %

Not less 10%

18,50%

17,98%

23,73%

19,20%

-5,23 p.p.

Regulatory capital/Total assets ratio (N3), %

Not less 9%

15,06%

14,58%

19,95%

14,65%

-4,89 p.p.

Instant liquidity (N4), %

Not less 20%

50,39%

52,75%

41,93%

54,30%

8,46 p.p.

Current liquidity (N5), %

Not less 40%

85,15%

70,75%

56,23%

73,02%

28,92 p.p.

Short-term liquidity (N6), %

Not less 60%

100,29%

94,46%

109,05%

89,34%

-8,76 p.p.

Norm of large loan risks (N8), %

 Not more 800%

154,85%

 178,68%

77,33%

148,37%

77,52 p.p.

Norm of the maximum amount of loans, guarantees and sureties, issued to the insiders (N10), %

Not more 30%

5,62%

2,99%

7,10%

2,36%

-1,48 p.p.

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

                4. The liquidity of the Bank demonstrates high indicators. As of 01.07.2012 the three norms of the Bank’s liquidity (N4, N5 and N6) have excessively exceeded the normative requirements set for them. The norm of instant liquidity (N4) has been at the level 50,39% (the required norm – not less 20%, and the average on the banking system – 52,75%), the norm of current liquidity (N5) has amounted to 85,15% that is by 28,92 p.p. more, than as of 01.07.2011 (the required indicator – not less 40% and the average on the system – 70,75%), the norm of short-term liquidity (N6) has also exceeded the average market indicator (94,46%), having amounted to 100,29% (the required indicator – not less 60%).

 5. The quality of the loan portfolio of PJSC «MEGABANK» has been at a rather good level. As of 01.07.2012 the ratio of loan provisions to customer credits and debt has amounted to 6,17%, while the average of this indicator on the banking system of Ukraine has amounted to 20,54% at the same date. Besides, in the financial report of PJSC «MEGABANK» in the second quarter of 2012 there has indicated that the predominant proportion of the Bank’s loan portfolio has been classified as «standard» credit operations (UAH 1,313 bn), and also as credit operations «under control» (UAH 1,893 bn).

             6.  Net profit of the Bank has increased in 4 times or by UAH 4,061 mln and has amounted to UAH 5,436 mln according to the results of the 1 half of 2012, compared to the same period of 2011. The increase in the Bank’s profit has been influenced by the growth of some income categories, as well as by a reduction of certain expenses. Particularly, during the analyzed period net commission income of the Bank has increased by 13,08% or by UAH 7,373 mln, result from operations with foreign currency has grown by 12,9% or by UAH 260 th. in the same period, at the same time deductions into provisions from impairment of loans and funds in other banks have reduced by 13,65% or by UAH 4,320 mln.

Table 3

Indicators of income and expenses of PJSC «MEGABANK» in the 1 half of 2011-2012, th. UAH, %, p.p.

Indicators

I half of 2012

I half of 2011

Change

Growth rate, %

Net interest income

57 505

59 151

-1 646

-2,78%

Net commission income

63 750

56 377

7 373

13,08%

Net commission income/ Net interest income ratio

110,86%

95,31%

15,55

-

Result from operations with securities in the trading portfolio of the bank

0

0

0

0,00%

Result from operations with foreign currency

2 275

2 015

260

12,90%

Deductions into provisions from impairment of loans and funds in other banks

(27 331)

(31 651)

-4 320

-13,65%

Administrative and other operating expenses

(101 421)

(92 096)

9 325

10,13%

Net profit

5 436

1 375

4 061

295,35%

ROE, %

0,82%

0,21%

0,61 p.p.

-

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

Therefore, the analysis of key performance results of PJSC «MEGABANK» demonstrates positive trends of development in the 1 half of 2012. The Bank stably increases the resource base as well as the asset portfolio. At the same time, the Bank manages to maintain the quality of the loan portfolio at a rather high level that, against the background of excessive capitalization and high liquidity indicators, is the key to the financial stability of institution, guaranteeing the Bank’s performing its undertaken commitments to depositors and other counterparties.

 

Analytical service of RA «Expert-Rating»

Confirmation of PJSC «MEGABANK» (english version) - 22.08.2012

Share on livejournal.com Share on twitter.com