OREANDA-NEWS. March 27, 2012. Expert Rating RA confirmed credit rating of “CREDIT AGRICOLE” PJSC (EDRPOU code 14361575 and the Bank bonds of A and B series at the uaAA+ level according to the national scale. Confirming the credit rating, the Agency relied on the Bank performance data for 2011, reported the press-centre of CREDIT AGRICOLE.    

The main factors contributing to the rating confirmation:

In 2011, “CREDIT AGRICOLE” PJSC demonstrated a good development dynamics, which is clearly confirmed by the high rate of the Bank’s key performance indicators increase. Thus, in 2011 the Bank assets increased by 29.24% or 1.6 bln UAH and made 6.9 bln UAH as of 01.01.2012; whereas the average assets increase rate of the banking system of Ukraine made 11.91% as of the same period. The volume of the liquid assets increased by 41.96% and made 1.1 bln UAH according to the year results which amounted to 16.1% of the total Bank assets volume.

The Bank credit portfolio for the period being analyzed increased by 1.2 bln UAH or 26.6% (with the average market increase – 8.44%) and made 5.5 bln UAH as of 01.01.2012. The process of the Bank credit portfolio enlargement was accompanied by its quality enhancement, which is indirectly confirmed by a lesser necessity of provisioning for loan depreciation whose volume reduced by 23.19% or 138.9 MUAH for 2011 and made 459.9 MUAH as of 01.01.2012. The ratio between provisions for loan depreciation and the loan portfolio of the Bank for the period from 01.01.2012 to 01.01.2012 declined by 5.39 percentage points: from 13.71% to 8.32% despite the fact that the average value of this indicator in the banking system as of 01.01.2012 was still rather high - 18.16%.

The Bank liabilities as of 01.01.2012 made 6.1 bln UAH which exceeds their volume as of 01.01.2011 by more than a third (by 32.92% or 1.5 bln UAH). The positive development dynamics was noted in all the constituents of the Bank resource base formed from the external sources. In addition to that, the volume of assets attracted from the other banks grew at the most rapid rate – by 53.62% or 735 bln UAH.  The LE funds increased by 39.85% or 357.8 bln UAH and PI funds increment made 16.68% or 336.6 bln UAH. The Bank liability structure as of 01.01.2012 was as follows: the PI funds made 38.4% (2.4 bln UAH), the LE funds – 20.5% (1.3 bln UAH), the other banks funds – 34.4% (2.1 bln UAH) that generally indicates a good level of the Bank resource base diversification.   

According to 2011 results, the Bank net profit amounted to 45.9 MUAH, while the previous year the Bank demonstrated 23.4 MUAH losses. Due to the net interest profit increase by 23.04% or 60.2 MUAH and decrease in allocations to provisions for loan depreciation by 23.19% or 138.9 MUAH, positive financial performance of the Bank could be achieved. The Bank ROE index as of 01.01.2012 made 6.02%.

As of 01.01.2012, the Bank equity amounted to 763.7 MUAH that exceeds the indicator as of 01.01.2011 by 41.6 MUAH or 5.76%. Due to assets increase rate outrunning the capital surplus rate, the Bank’s capital adequacy ratio reduced by 2.46 percentage points and made 11.08% as of 01.01.2012. In addition, the Agency emphasizes that the indicated decrease of the given indicator is a reflection of the Bank’s policy aimed at improving the equity use efficiency and by no means worsens the level of solvency.

Results of 2011 published by Credit Agricole Group on February 23, 2012 point at the increase of the Group’s importance in the EU financial system and its share on the European market. Total income of Credit Agricole Group for 2011 exceeded 35.129 bln EUR , which is 2.7% more than in 2010. In comparison with 2010, the gross operating income of Credit Agricole Group increased by 1.1%.  In spite of the business indicators and operating activities increase, operating income of the Group for 2011 decreased by 16.8% and taxable income - by 40% in comparison with the similar indicators for 2010. Operations of Credit Agricole Group in 2011 remained profitable, but the volumes of taxable and operating income decreased due to the necessity to enlarge provisions. Credit Agricole Group explains a 29,2% increase in provisions for active transactions  by the EU aid to Greece.

Thereby, according to 2011 results as compared to those for 2010, “CREDIT AGRICOLE BANK” PJSC demonstrated excellent development dynamics. During the indicated period the Bank increased its assets and liabilities portfolio by a third, taking into account the fact that the average increase rate of the given indicators of the banking system of Ukraine fluctuated at the level of 11-12%. As a result of the loan portfolio increase against the backdrop of its quality improvement with the net interest income growth, the Bank managed to put an end to its loss-making activity and demonstrate a rather significant volume of profit. Besides, the Bank constantly maintains the liquidity and solvency indicators at the adequate level which guarantees timely fulfillment of its obligations.  In 2011, operations of Credit Agricole Group remained profitable and, in the opinion of the Agency, the Group could provide practically boundless external support to its business in Ukraine.