Credit Rating of Kreditprombank Grew Up
OREANDA-NEWS. March 01, 2012. According to the results of 2011, the rating agency “Expert Rating” raised credit rating of the PJSC “Kreditprombank” to the level of uaBBB+ on a national scale, as well as changed outlook on the rating to “positive”, reported the press-centre of Kreditprombank.
As noted in the rating report, as at 01.01.2012 the assets of Kreditprombank made UAH 12.5 billion. At the same time, the bank’s loan portfolio for the year increased by 10.66 percent (or by UAH 1.2 billion) and reached UAH 12.3 billion. The experts assessed positively the growth of credit portfolio of Kreditprombank and noted that in the future it will have a positive influence on increase of the bank’s interest income and indicators of its profitability.
The volume of the bank’s liabilities as of 01.01.2012 amounted to UAH 10.4 billion that is by 16.15 percent (or by UAH 2 billion) less than in 2010. Decrease of total volume of the bank’s liabilities was primarily due to reduction of liabilities to other financial institutions (by 28.42 percent or UAH 797.4 million). At the same time, the bank managed to increase portfolio of retail deposits, the volume of which by the results of 2011 in comparing with previous year increased by UAH 581.9 million (or by 12.19 percent) and made UAH 5.4 billion.
According to analysts, the negative financial result demonstrated by the bank for the last year will have no significant effect on the stability of financial institution.
Equity capital of Kreditprombank up to 2011 made UAH 2.1 billion that is by 14.64 percent (or by UAH 271.9 million) more than as of 01.01.2011. Increase of its volume contributed to the growth of indicator of the bank’s capital and assets ratio, the value of which as at 01.01.2012 reached 17.02 percent, while as of 01.01.2011 this indicator was at the level of 13.05 percent. Recall that in 2011 it was carried out additional capitalization of financial institution due to issue of additional shares.
The structure of the bank’s shareholders was changed: Homertron Trading Limited owns 23.5 percent shares, Fintest Holding Limited owns the package in the amount of 28.72 percent shares and Kalouma Holdings Limited controls 47.78 percent of the bank’s charter capital. At the same time, the shareholders of Kalouma Holdings Limited are 28 leading international financial institutions, among which are European Bank for Reconstruction and Development, BNP Paribas (Suisse) S.A., ING Belgium S.A./N.V., UniCredit Bank Austria AG, Pireus Bank S.A., Erste Bank Internationale Beteiligung GmbH, Cargill Incorp. etc. According to the agency, the fundamental changes occurred in the life of Kreditprombank have a positive impact on the level of its solvency and the bank guarantees a high level of external support in the future.
Thus, according to the rating report, an analysis of key indicators of performance of Kreditprombank and the dynamics of their changes indicate a strengthening of the competitive position of the bank. The most significant achievements in 2011 are a completion of restructuring of debt owed to foreign creditors and the appearance in the structure of shareholders of European Bank for Reconstruction and Development and group of international financial institutions. This factor has a decisive influence on the decision to increase the bank’s credit rating on a national scale, the report said.
At the same time, and management and shareholders of the bank were able to concentrate promptly and efficiently all necessary resources to neutralize the still appearing negative effects of the financial crisis as evidenced by the level of provisions for depreciation of loans and volume of replenishment of equity capital, analysts say. As a result, it was formed a sufficient safety margin and solvency, Kreditprombank continuous to grow steadily: by attracting financial resources and increasing loan portfolio it strengthens its business position in the domestic market of banking services.
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