CREDIT AGRICOLE BANK Receives High Credit Rating
OREANDA-NEWS. July 25, 2011. RA "Expert-rating" shall announce the assigning of credit rating to PJSC “CREDIT AGRICOLE BANK”. Rating committee RA "Expert-rating" has rated the Bank uaАА+ level by national scale. The Bank is characterized by a high credit capacity compared to other Ukrainian banks. When assigning such a high rating level the Rating committee considered the following conclusions of the analytical service, reported the press-centre of CREDIT AGRICOLE BANK:
One of the main factors which influenced the Bank rating was a unique and guaranteed high level of external support of PJSC “CREDIT AGRICOLE BANK” by its parent company Credit Agricole Group. Good financial standing of Credit Agricole, identified by ratings of international agencies such as Moody’s, Standard and Poor’s and Fitch, was supplemented by significant scales of the Group work. Credit Agricole has entered the year 2011 with assets of EUR 1,731 trillion, loan portfolio – EUR 882 billion and customer deposits portfolio – EUR 812 billion. These showings gave Crйdit Agricole the right to join the largest banking holdings in the world and European Union.
In the first quarter of 2011 PJSC "CREDIT AGRICOLE BANK" has restored its loan granting activity. For the period from 01.04.2010 till 01.04.2011 the loan portfolio of the Bank has increased by 55,71%. Loans to legal entities increased by 63%, to private individuals - 10%. The share of nonstandard loans in portfolio has decreased from 48% to 32%, problem loans - from 25,66% to 13,82%, bad loans - from 11,5% to 6,62%. Obviously the quality of loan portfolio significantly improved. According to the Agency the main factors of the improvement were: sale of problem loans to the third parties, considerable growth of loan portfolio of the Bank, and also the change in loan portfolio structure in favor of increasing the share of loans to legal entities.
PJSC "CREDIT AGRICOLE BANK" has demonstrated an excellent level of business diversification. Yes, a maximum size of credit risk per one contractor (Н7) equaled 19,28% as of 01.04.2011 with the average value in the system on the level of 21,76%, and ratio value of NBU no more than 25%. The large credit risks ratio (Н8) as of 01.04.2011 equaled 76,25% with the average value in the system 176% and ratio value no more than 800%. The biggest deposit in the Bank equaled 3% of the legal entities portfolio or about 1% of the total deposit portfolio of the Bank.
The Bank has adhered to the optimum value of main liquidity ratio. Thus, as of 01.04.2011 the instant liquidity ratio (Н4) of the Bank made 29,4%, with the average value in the system 57,33% and ratio value no less than 20%. The current liquidity ratio (Н5) 44, 35%, average in the system 79,66% with ratio value no more than 40%. The short-term liquidity ratio of the Bank (Н6) made 70%, with the average value in the system 91% and ratio value no less than 60%. PJSC "CREDIT AGRICOLE BANK" did not follow the common tendency and did not support the excessive liquidity in large amounts, what in future shall definitely influence its income in a good way. In the first quarter of 2011 the Bank has regained profitability. Net income of PJSC "CREDIT AGRICOLE BANK" for the first quarter made 9,4 mio UAH.
According to the Agency calculations in the beginning of the second quarter the PJSC "CREDIT AGRICOLE BANK" share in the system assets equaled 0,53%, and 0,53% of the total loan portfolio of Ukrainian banks and 0,62% in funds of legal entities and private individuals. We should mention that in 2011 PJSC "CREDIT AGRICOLE BANK" has not fully realized its potential on the loan market of Ukraine. Limit of the parent company Credit Agricole S.A. for PJSC "CREDIT AGRICOLE BANK" equals 210 mio USD. As of 01.04.2011 the limit was used only for 66%.
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