During the period from June, 27th till July, 04th, 2011 RA Expert Rating conducted estimation of credit rating of JSC ‘BROKBUSINESSBANK’ (USREOU code 19357489). Having in details studied the activity of JSC ‘BROKBUSINESSBANK’ , Rating Committee of RA ‘Expert Rating on July, 5th, 2011 took decision on assignment to
the Bank of credit rating according to the national scale at the level uaАА (the bank is characterized by high credit
status in comparison with other Ukrainian banks. The estimate is made according to the national scale approved by the Resolution of the Cabinet of Ukraine no. 665 of April, 26th, 2007).
Assigning investment level of rating, the Rating Committee was guided by the following conclusions:
1. JSC ‘BROKBUSINESSBANK’ is one of the oldest banks of Ukraine which history begins since August, 1990. For this long time of work the Bank not only has endured the hyperinflation period in first half of 90-s, the crisis of public finances of 1998–1999, economic crisis of 2008–2009, but also managed to firmly persist in the first group of
banks according to NBU classification, that is, the group of the largest banks. On the beginning of Q2 2011 the Agency estimates JSC ‘BROKBUSINESSBANK’ share in the key markets of banking services at 1,6–2,2%.
2. As of June, 1st, 2011, JSC ‘BROKBUSINESSBANK’ had 20 branches and 387 non balance departments that made the Bank owner of one of the most branched out networks among backbone private banks. According to the Agency, availability of a wide filial network of Bank with representation in key regions makes from the Bank an asset
attractive for investments. Resource management and credit processes within filial network of Bank, as well as
accomplishment of budget by branches, dynamics and structure of credit and depositary portfolios, profitableness were rigidly administered by Head Bank. Within the limits of business transformation the Bank continues to pursue a policy, directed on standardization and centralization of banking processes; automation of business processes, optimization of ІТ base; centralization of administrative processes; strengthening of internal control system.

3. JSC ‘BROKBUSINESSBANK’ has entered Q2 2011 with excessive value of regulative capital adequacy norm (Н2) at the level of 19,55% at the specification of 10 %, and also with excessive value of the norm Н3 (equity/assets ratio) at level of 15,8% at the specification of 9 %. The last 5 years of work were profitable for JSC ‘BROKBUSINESSBANK’, and despite decrease in ROE during the 2008–2009 crisis, the Bank has clearly shown in
practice that it is capable to generate profit which can be further on capitalized. Also support by its key shareholders can be rendered to the Bank: both financial one, judging from that over the last 5 years the authorized fund of Bank was increased 3 times, as well professional one, judging from considerable experience of shareholders and persons related with them in bank sector.
4. The Agency highly appreciated the quality of JSC ‘BROKBUSINESSBANK’ assets. According to RA Expert-Rating, the share of negatively classified credits in JSC ‘BROKBUSINESSBANK’ credit portfolio on the Q2 2011 beginning remains at less than 10%. During the crisis the Bank in due time switched to crediting of legal persons which share in Bank portfolio on 01.04.2011 exceeded 70 %. Also as of 01.04.2011 the JSC ‘BROKBUSINESSBANK’ redundantly adhered to all norms of maximum credit risks (Н7, Н8, Н9, Н10). The branch structure of Bank credit portfolio was balanced and well diversified.
5. On 01.04.2011 JSC ‘BROKBUSINESSBANK’ adhered to the norms of instant, current and short-term liquidity with high redundancy both in connection with limit values established by NBU, and average values developed in the system. The excess liquidity condition in the short-term period guaranteed raised level of Bank stability, and in the long term opens possibility for dynamically steady escalation of credit portfolio in compliance with current trends of
market and business development.
6. The client diversification of Bank credit portfolio and deposit portfolio is recognized by Agency as satisfactory. On the Q2 2011 beginning the 3 largest borrowers of Bank corresponded to approximately 18% of credit portfolio amount, the 3 largest investors — to 11,4%.

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