Press Releases / 01.07.2014

Press Release as of 01.07.2014

Commercial Bank «OBRAZOVANIE»

CJSC AK&M Rating Agency upgraded the national scale credit rating of Commercial Bank OBRAZOVANIE (license no. 1521) to 'A+'. The outlook is stable.


CJSC AK&M Rating Agency upgraded the national scale credit rating of Commercial Bank OBRAZOVANIE (license no. 1521) to 'A+'. The outlook is stable.

The 'A+' rating indicates that CB OBRAZOVANIE qualifies as a highly creditworthy borrower. The risk of a failure to meet obligations in time is insignificant.

We appreciate the Company's growing key performance indicators (equity capital, assets, net loans receivable, personal deposits), sustained loan portfolio excellence and low percentage of loan arrears, low funding costs, and profitable operations as the key positive rating drivers.

Equity capital of Commercial Bank OBRAZOVANIE keeps improving, topping the RUB 4 billion mark as of June 1, 2014.

Over the period from October 1, 2013 to June 1, 2014, the Bank's equity capital grew by RUB 882.7 million (27.7%) to RUB 4,066.8 million. Authorized capital increased by 42.7% for the same period, which we also regard as a positive signal.

The well-structured and growing assets have contributed to our decision to upgrade the credit rating. The Bank's net loans receivable have shown an impressive growth over the last 8 reporting months (by RUB 3,980.1 million, i.e. 20.4%) and currently account for the greater part of its net assets (71.7%).

The Bank maintains good quality of loan assets, with low loan arrears (less than 1% of the total loans receivable), which certainly has a positive effect on the rating.

The amount of individual deposits continues to increase (by 32.2% in 2013, by 3.2% for the first five months of 2014. As of June 1, 2014, the accounted balances totaled RUB 10,658.5 million (32.5% of the Bank's liabilities).

The relatively low cost of debt (compared with the Bank of Russia's refinancing rate) also supports the rating. In 2014, the cost of liabilities and interest rates on customer deposits did not exceed 4.8% p.a.

The Bank's operations are profitable. In 2013, its net profit amounted to RUB 345.4 million, return on assets was 1.26%, return on equity was 11.3%. As of June 1, 2014, the Bank's net profit reached RUB 114.6 million.


At the same time, we regard Commercial Bank OBRAZOVANIE's capital adequacy as low. While always meeting the applicable requirements of the Central Bank of Russia, the Bank's N1 ratios were below the average level in Russia's banking sector. As of the last reporting date, on June 1, 2014, this ratio was 11.64%.

As of May 1, 2014, the 10 largest depositors accounted for 21.2% of the Bank's liabilities, which is also putting certain pressure on the rating.


Full Bank name: Commercial Bank OBRAZOVANIE.


Commercial Bank OBRAZOVANIE has been operating in the market of banking services since 1991. The Bank possesses general banking license no. 1521 as of August 22, 2013 issued by the Central Bank of the Russian Federation, with a banking license to accept deposits of precious metals and effect other transactions involving precious metals, dated December 19, 2007.

The Bank is a member of the compulsory deposit insurance scheme, DIS registration certificate no. 939 as of November 28, 2005.

Commercial Bank OBRAZOVANIE provides the standard range of banking products and services involving Russian rubles and foreign currencies, focusing on lending to SME businesses and exchange operations.

Apart from its Headquarters, the Bank's network consists of 10 branches, 25 satellite offices, 5 operational offices and 18 stand-alone cash desks. Headquartered in Moscow, CB OBRAZOVANIE is currently active in 15 regions in 6 federal districts of the Russian Federation.

The Bank's reports are audited by CJSC BDO, a member of nonprofit partnership SRO Audit Chamber of Russia, principal SRO registration number 10201018307.


This press release is based on the Statement of assignment of a credit rating to Commercial Bank OBRAZOVANIE.

The credit rating, along with any information and conclusions provided in this press release, only conveys our opinion on the Bank's creditworthiness and shall not be construed as a recommendation to purchase or sell securities, or to lend funds to the Bank.

AK&M Rating Agency shall not be held liable for any interpretations, inferences and consequences related to the application of results of the rating estimation procedure by any third parties.

CJSC Analysis, Consulting and Marketing Rating Agency is a leading independent national rating agency engaged in rating activities since 1993. CJSC AK&M Rating Agency is accredited by the Ministry of Finance of the Russian Federation (order no. 452 as of September 17, 2010) and is on the Central Bank of Russia's Register of Accredited Rating Agencies.


CJSC Analysis, Consulting and Marketing Rating Agency

ul. Gubkina 3, Moscow, Russia

Phone no. (495) 916-70-30, fax no.: (499) 132-69-18.