OREANDA-NEWS.  September 18, 2012. Expert Rating RA confirmed credit rating of PJSC “CREDIT AGRICOLE” (EDRPOU code 14361575) and the Bank bonds of A and B series at the uaAA+ level according to the national scale. The borrower having uaAA+ rating is characterized by a very high solvency in comparison with other Ukrainian borrowers. Making decision of assigning the credit rating according to the national scale, the Agency was guided by key results of the Bank’s activity for the first half of 2012, reported the press-centre of CREDIT AGRICOLE BANK.

Within the period from 01.01.2012 till 01.07.2012 the Bank assets increased by 7,39% (from 6,848 bln UAH up to 7,354 bln UAH), liabilities increased by 8,08% and amounted to 6,623 bln UAH,  the equity increased by 1,55% and as of 01.01.2012 amounted to 731,1 bln UAH. Against the backdrop of tendency with regard to the reduction of the Ukrainian banks’ credit portfolio, PJSC “CREDIT AGRICOLE BANK” continued to increase the lending volumes and thereby, enforced its positions in such banking services market segment. And as of 01.07.2012, in accordance with the reporting of the Bank, its balance sheet “loans and indebtedness of the customers” amounted to 5,781 bln UAH, meaning that it exceeded the result of 01.01.2012 by 15, 07 % or 756,9 MUAH.

In the first half of 2012 CREDIT AGRICOLE BANK successfully stepped up its presence on the market of both LE and PI deposits. So, within the period from 01.01.2012 till 01.07.2012 PI funds attracted by the Bank increased by 25,72 % or by 607,1 MUAH up to 2,968 bln UAH, LE funds increased by 28,59% or by  359,3 MUAH and amounted to 1,616 bln UAH. In this case, the cumulative volume of PI funds attracted by the banks of Ukraine increased by 10,47% at average for the same period of time, however, LE funds decreased by 6,85%. Significant excess of PI and LE deposit increment rate over the mid-market rate indicates the growth of PJSC “CREDIT AGRICOLE BANK” market share on these markets crucial for the banking system of the country.   

 As of 01.07.2012 the principal constituents of the Bank liabilities encompassed the following: PI funds – 44,81 % (as of 01.01.2012- 38,52%), LE funds – 24,40% (as of 01.01.2012 – 20,51%), funds of the banks – 22,72% (as of 01.01.2012 – 34,36%). The Agency positively evaluates changes in the resource base of PJSC “CREDIT AGRICOLE BANK”.

Good capitalization level enabled PJSC “CREDIT AGRICOLE BANK” to increase the assets volume at a fast pace compared to the capital increase dynamics, for which reason some decrease of the capital adequacy ratio of the Bank took place. So, as of 01.07.2012 compared to 01.01.2012 adequacy ratio of the regulatory capital (H2) decreased from 15,60% to 12,50% (while the regulatory value – no less than 10%)  and regulatory capital to total assets ratio (H3) decreased by 1,10 percentage points (p.p.) up to 12,97% (while the required ratio should be no less than 9%). In such a case, the Agency is expecting a significant increase of the authorized capital of PJSC “CREDIT AGRICOLE BANK” in the near future that will become a consequence of its merging with one bank subsidiary of Credit Agricole Group – PJSC “Corporate and Investment Bank Credit Agricole” (hereinafter – PJSC “CIB Credit Agricole”).

Resolution on the merging of two banking entities was approved on July 2, 2012 at extraordinary General Shareholders’ Meeting of PJSC “CREDIT AGRICOLE BANK”. Based on the merging result, PJSC “CIB Credit Agricole” will stop its activity and transfer its assets, rights and obligations to PJSC “CREDIT AGRICOLE BANK”. The merging terms also stipulate an increase of PJSC “CREDIT AGRICOLE BANK”  authorized capital by the amount of PJSC “CIB Credit Agricole” authorized capital (172,929 MUAH), in the result of which the authorized capital of the Bank-legal successor will amount to 1,223 bln UAH. PJSC “CIB Credit Agricole” (until 2012 – “Calyon Bank Ukraine”) started its activity in Ukraine in 1993 and mostly dealt with corporate customers. As of 01.07.2012 assets of PJSC ”CIB Credit Agricole” amounted to 3,949 bln UAH, liabilities – 3,381 bln UAH, net profit of the Bank, based on the first half of 2012, amounted to 145,639 bln UAH.  

The active position of PJSC “CREDIT AGRICOLE BANK” on the credit market made possible to increase efficiency of the resource base that, respectively, affected the decrease of the redundant level of some liquidity indicators of the Bank.  Thus, as of 01.07.2012 as compared to 01.07.2011 quick liquidity ratio of the Bank (H4) decreased by 26, 35 p.p.: from 66,92% to 40,57% while the limit value should not be less than 20%. Current liquidity indicator of the Bank (H5) decreased by 2,43 p.p. up to 44,94% (while the regulatory value should not be less than 40%, and short-term liquidity ratio of the Bank (H6), on the contrary, increased by 5,73 p.p.: from 67,29 % to 73,02 % (while the required value – no less than 60%).

Quality of PJSC “CREDIT AGRICOLE BANK” assets was at reasonably high level. Dynamics of quality indicators of the Bank credit portfolio demonstrated the firm trend in decreasing its risk level. Within the period from 01.01.2012 till 01.07.2012, in the course of increment of loans and indebtedness of the Bank’s customers at the level of 15,07%, volume of the formed provisions for loan depreciation reduced by 3,12%. And, thus, indicator of provisions for loan depreciation to the credit portfolio ratio of the Bank decreased by 1,58 p.p. In general, the banking system of Ukraine faced the contrary tendency – for the same period of time an average ratio of such indicator increased from 18,16% to 20,54%.

In the first half of 2012 the Bank’s activity remained profitable. Financial result of PJSC “CREDIT AGRICOLE BANK” based on the results of the first half of 2012 amounted to 4,745 MUAH of the net profit that is less by 81,63% or by 21,088 MUAH than for the same period last year. Both decrease of the net interest income by 9,62% or by 15,144 MUAH and increase of the administrative and other operational expenses (by 2,16% or by 5,752 MUAH), as well as, the need to form provisions for depreciation of loans and funds in other banks, affected the decrease of the Bank profit. The volume of the net commission income of the Bank considerably increased for the indicated period – by 52,79% or by 40,757 MUAH and based on the results of the first half of 2012 amounted to 117,963 MUAH.  

In the first half of 2012 Credit Agricole Group significantly ameliorated the capital adequacy indicators. And, as of 30.06.2012 the capital adequacy of the first level of Credit Agricole amounted to 11,3%, that is 110 basic points higher than at the beginning of 2012. In the second quarter the activity of Credit Agricole remained profitable, and, based on the quarter results, the group demonstrated the gross operating income in the amount of 1,479 bln EUR and net profit amounted to 174 MEUR.

Thereby, PJSC “CREDIT AGRICOLE BANK” demonstrated positive development tendencies for the first half of 2012.  The increment of assets, including credit portfolio and liabilities of the Bank exceeded the midmarket dynamics. The Bank supports the quality of the assets portfolio at reasonably high level, constantly generates profit, and indicators of liquidity, as well as capital adequacy of PJSC “CREDIT AGRICOLE BANK,” exceed the limit requirements of the regulator being a guarantee of fulfillment of all obligations by the Bank in due time.  After the merging of PJSC “CIB Credit Agricole” and PJSC “CREDIT AGRICOLE BANK”, the Agency expects a significant growth of key performance indicators of the Bank that will result in substantial enhancement of the Bank’s position in the banking system of Ukraine.