By the decision of the rating committee of the Rating Agency "Standard-Rating" the long-term credit rating Piraeus Bank on the national scale at the level of uaAA was updated. A bank or individual debt instrument with a uaAA rating is characterized by very high creditworthiness compared to other Ukrainian borrowers or debt instruments. The decision to update the credit rating of PIRAEUS BANK ICB JSC was made on the basis of the analysis of the Bank's results for the first quarter of 2021, as well as the data of the Bank's statistical reporting for January-May 2021.
Following the results of the first quarter of 2021 JSC PIRAEUS BANK ICBB showed a significant increase in the funds of legal entities. In particular,as of 01.04.2021 compared to 01.01.2021 funds of legal entities grew by 29.86% (up to UAH 1.6 billion). Instead, funds of individuals decreased by 3.34% (to UAH 1.220 billion), and bank funds decreased by 4.50% (to UAH 319.232 million). The amount of funds raised by the Bank from the NBU (raised in 2020 by refinancing with repayment in 2025) remained unchanged in the analyzed period. Other funds raised in the resource base of PIRAEUS BANK ICB JSC were 99.86% represented by a long-term loan from the EBRD, which was received by the Bank at the end of 2020 with a maturity in 2022 under the SME support program.
The regulatory capital (H1) of JSC "PIRAEUS BANK ICB" for the period from 01.01.2021 to 01.04.2021 decreased by 1.64% and as of the beginning of April 2021 amounted to UAH 610,306 million, which is more than three times exceeded the limit set by the NBU for this standard (at the level of UAH 200 million). The regulatory capital adequacy ratio (H2) of the Bank as of 01.04.2021 compared to 01.01.2021 decreased by 0.02 percentage points. and amounted to 24.52%, which is 2.45 times exceeded the limit set by the NBU, and was also 1.93 percentage points. above the average value of this standard for the banking system of Ukraine.Fixed capital adequacy ratio (H3) of the Bank during the first quarter of 2021 grew at 0.18 percentage points up to 24.28%, which was 3.47 times higher than the limit set by the regulator, as well as 8.10 percentage points. exceeded the market average.
The Agency also notes that the mandatory net stable financing ratio (NSFR), which is a long-term liquidity ratio and determines the minimum required level of liquidity of the bank on the horizon of one year, in JSC "PIRAEUS BANK ICB" as of 01.04 .2021 was 155.94%, which is 75.94 percentage points higher than the minimum required value for this standard, set by the NBU at 80%.
Thus, as of April 1, 2021, all liquidity ratios of the Bank with a significant margin exceeded the NBU limits: short-term liquidity ratio (H6) by 37.23 percentage points. exceeded the limit set by the regulator, the net stable funding ratio (NSFR) was 75.94 percentage points. higher than the norm,the ratio of liquidity coverage ratio for all currencies (LCRvv) was 2.33 times higher than the limit set by the NBU, and the ratio of liquidity coverage ratio in foreign currency (LCRs) was 1.94 times higher than the normative value. In addition, H6 Bank at 8.32 percentage points. exceeded the average of this standard for the banking system of Ukraine. Additionally, the Agency notes that as of June 1, 2021, the Bank's H6 was 93.65%, NSFR was 142.71%, LCR was 194.93%, and LCR was 188.09%.
Therefore, as of the beginning of June 2021, JSC "PIRAEUS BANK ICB" was very well provided with liquidity, which confirms the importance of the relevant standards of the Bank (H6, NSFR,LCRs and LCRs).
Following the results of the first quarter of 2021 the profit of JSC PIRAEUS BANK ICB amounted to 2.636 million UAH, which is 2.22 times higher than the Bank's profit for the first quarter of 2020. At the same time, following the results of the first three months of 2021 in comparison with the similar period of 2020 net interest income PIRAEUS BANK ICB JSCincreased by 11.11% (to UAH 56.272 million), and the Bank's net commission income decreased by 3.87% (to UAH 21.886 million). The Agency positively assesses the growth of the Bank's profit.
Thus, following the results of the first quarter of 2021, the key balance sheet indicators of PIRAEUS BANK ICB JSC demonstrated divergent dynamics. The Agency draws attention to the significant increase in funds of legal entities (+ 29.86%) in the resource base of the Bank. Following the results of the first quarter of 2021 in comparison with the first quarter of 2020 the profit of JSC PIRAEUS BANK ICB has grown in 2,22 times (to 2.636 million UAH). The Bank's ability to increase profits in the current macroeconomic situation is positively assessed by the Agency.JSC "PIRAEUS BANK ICB" continued to maintain a high level of capital ratios (H1, H2 and H3) and was very well provided with liquidity. Relevant factors, as well as the fact that PIRAEUS BANK ICB JSC is a bank of Piraeus Bank Group - one of the largest European systemic banks - allowed the Agency to update the credit rating of PIRAEUS BANK ICB Joint Stock Company at such a high level.
The press-release of RA "Standart-Rating" is available via the followinglink.
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