RusRating assigns credit rating to Bank Voronezh
The rating is based on shareholder support (including access to friendly clients); a positive development trend; and low realised credit risks.
Constraining factors include the modest scale of the Bank’s business; asset and funding-side operations weakly diversified by type; and high exposure to large-scale credit risks.
OAO Bank Voronezh was set up in 1990 on the basis of the Voronezh regional arm of Promstroibank USSR. Today it is a private-sector bank that ranks among Russia’s top 400 by assets. The Bank is controlled by its own top managers, headed by Chairman of the Supervisory Board Oleg Kislyak (55.6% stake). Operations centre on SME loans and retail services, particularly personal deposits. E-commerce services are being actively developed. The Bank has a modest service network in the city of Moscow and Moscow region, where most of its business activity takes place.
Capital is sufficient and of good quality. External funding draws mainly on retail balances, supplemented by corporate client resources; its overall stability is rated satisfactory. Client loans of satisfactory quality are the main component of assets; the Bank also has a good-quality securities portfolio that serves to regulate liquidity. Profitability is modest due to pressure from operational and administrative costs and expenditures on reserve formation; healthy earnings in the first half of 2015 were the result of an unremunerated property transfer from shareholders. Overall risk sensitivity is elevated. Liquidity is sufficient.
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