Press Releases / 18.02.2014
Press Release as of 18.02.2014
CJSC AK&M Rating Agency affirmed the 'A' national scale credit rating assigned to IntrustBank (JSCB) (license no. 3144). The outlook is stable.
The 'A' rating indicates that IntrustBank (JSCB) is a highly reliable borrower. Risk of a delay in meeting liabilities is relatively low, restructuring risk for a loan / part of a loan is minimal.
We appreciate the continuing growth of the Bank's key performance indicators and its profitable operation as positive rating drivers.
The Bank's equity capital is still on the rise. In 2013, it increased by RUB 478.2 million (32.4%), which is twice above the average percentage in Russia's banking sector. The growth was driven by a subordinated loan and retained earnings.
The Bank benefits from well-structured and growing assets and liabilities.
As of October 1, 2013 the Bank's assets increased by RUB 1,877.6 million (15.7%) since the start of the year. The asset growth rate exceeded the average level in Russia's banking sector for the same period (9.8%). The Bank's net loans receivable account for most of its assets (86.3%).
IntrustBank (JSCB) has achieved a comfortable diversification of funding sources. Customer deposits were the main source of the Bank's liabilities; among them, the share of personal deposits was 45.2%. Deposits of credit institutions accounted for 13.4%, financing through debt instruments for 8.0% of the total borrowings. Liabilities increased by RUB 1,658.6 million (15.3%), mainly due to higher customer deposits.
The Bank is a profit-making institution operating above the break-even point. For 9 months of 2013, its net profit totaled RUB 221.0 million; as of October 1, 2013 its return on assets ratio was 2.4%, return on equity ratio was 19.1%.
At the same time, the poor capital quality, unimpressive loan portfolio, and worse liquidity position are exerting pressure on the Bank's credit rating.
Since our previous review, the poor equity capital quality has remained one of the negative rating drivers for the Bank. As of February 1, 2014, the latest reporting date, the capital quality ratio (Tier 2 to Tier 1 capital ratio) reached 76.1%, unable to meet the Central Bank of Russia's guidelines (no more than 30%).
The Bank's inability to improve its loan portfolio is working against its rating. Loans of quality grades 2 and 3 still account for most of the Bank's loan portfolio (59.1% and 30.2%, respectively). At the same time, the percentage of loan arrears is within acceptable limits (2.3% of the loan book).
Another risk factor for the Bank is a weaker liquidity position. In particular, acid test ratio (N2) decreased from 49.53% on December 1, 2013 to 29.43% on January 1, 2014 and further to 27.59% as of February 1, 2014. However, the average quality of liquidity ratios, applying AK&M Rating Agency's estimation guidelines, exceeds 100%, which is a fairly strong result.
Full name: Joint-stock Commercial Bank IntrustBank.
Short name: IntrustBank (JSCB).
IntrustBank (JSCB) has been active in the market of banking services since 1994. The Bank possesses general banking license of the Central Bank of Russia no. 3144 as of December 6, 2002).
The Bank is operating within the deposit insurance scheme, DIS registration no. 916 as of September 15, 2005.
IntrustBank (JSCB) provides the standard range of banking products and services involving Russian rubles and foreign currencies. It mainly focuses on comprehensive services to corporate customers.
Apart from its Headquarters, IntrustBank (JSCB) has a network comprising 6 branches, 1 satellite office, and 4 stand-alone cash desks. Headquartered in Moscow, the Bank has branches in St. Petersburg, Samara, Voronezh, Volzhsky, Izhevsk, Smolensk.
The Bank's auditor is Finansoviye i Bukhgalterskiye Konsultanty LLC (FBK LLC), a member of SRO nonprofit partnership Audit Chamber of Russia, membership certificate no. 5353 as of 12/21/2009, principal number of registration entry 10201039470).
This press release is based on the statement of assigning a credit rating to IntrustBank (JSCB).
The credit rating, along with any information and conclusions provided in this press release, only conveys our opinion on the Bank's reliability and shall not be construed as advice on the purchase and sale of securities or the provision of loan facilities to the Bank.
CJSC AK&M Rating Agency will not incur any responsibility for any interpretations, inferences and consequences related to the application of results of the rating estimation procedure by any third parties.
CJSC AK&M 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).
CJSC Analysis, Consulting and Marketing Rating Agency