Press Releases / 27.02.2013

Press Release as of 27.02.2013


CJSC Rating Agency AK&M confirmed the ‘A’ credit rating assigned to OJSC Lipetskcombank (license no. 1242) (ZENIT Banking Group) as per the national scale, revised the outlook from stable to positive.


The ‘A’ rating indicates that OJSC Lipetskcombank qualifies as 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 key performance indicators, profitability of operations, fairly high return ratios, and maintenance of good liquidity as the positive arguments essentially supporting the Bank’s rating.

The Bank's equity capital is still on the rise. In 2012, its own funds increased by RUB 319.9 million (13.8%).

The rating of OJSC Lipetskcombank is also supported by its steadily growing total net income which, in particular, rose by 11.6% in 2012. Also of note is that the net interest income accounts for more than 70% of the Bank’s total net income, indicating a good net income structure of the Bank.

The Bank is steadily improving profit performance. In 2012, its pre-tax profit increased by 8.9%, profit after tax by 11.1% year-on-year.

OJSC Lipetskcombank has achieved fairly high return ratios. The Bank’s return on equity is above the average level in Russia’s banking sector (20.9% against 18.3%). Return on assets is 2.1%, which is also reasonably good and close to the average value in the banking system (2.3%).

We also appreciate the growing amount of funds placed by both individuals and companies as a positive signal for the Bank’s rating. In total, customer deposits increased by RUB 1,901.9 million (9.7%) in 2012.

All the Bank’s liquidity ratios are comfortably good. The average quality of liquidity ratios estimated using AK&M Rating Agency’s method is high (more than 100%). As a whole, the absence of liquidity-specific issues at OJSC Lipetskcombank may be regarded as one of the things underlying the high rating score.

At the same time, the slow asset growth rate and the low capital adequacy are exerting pressure on the Bank’s rating.

The Bank’s asset growth rate is below the average value in Russia’s banking system. In particular, the Bank’s asset increased by 7.9% in 2012, by 15.9% in 2011, which is way below the average asset growth rates of Russian banks (18.9% and 23.1%, respectively).

We also regard the capital adequacy at OJSC Lipetskcombank as low. As of January 1, 2013, the N1 ratio was 11.12% against 13.7% on average in the banking sector. At the same time, it will be noted that the N1 ratio has never failed to meet the requirements of the Central Bank of Russia.

Full name: Open Joint Stock Company Bank for Social Development and Construction Lipetskcombank.

Short name: OJSC Lipetskcombank.

OJSC Lipetskcombank has been operating in the market of banking services since 1990. The Bank is licensed by the Central Bank of the Russian Federation, general banking license no. 1242 as of June 28, 2012.

The Bank participates in the compulsory deposit insurance scheme, DIS registration certificate no. 789 as of March 21, 2005.

OJSC Lipetskcombank provides the standard range of banking products and services involving Russian rubles and foreign currencies.

OJSC Lipetskcombank is headquartered at: Internatsionalnaya 8, Lipetsk city, Russia. The Bank’s retail network, apart from its HQ, comprises 4 branches, 19 satellite offices and 1 stand-alone cash desk. OJSC Lipetskcombank is operating in 4 regions: Lipetsk region, Moscow, Belgorod region, Krasnodar Krai.

OJSC Bank Zenit has been the Bank’s major shareholder since June 2007 (99.395%). ZENIT Banking Group was established in 2005 as Bank Zenit acquired a controlling stake in JSB Devon-Credit. In 2007, Lipetskcombank and Sochigazprombank (renamed as Bank Zenit Sochi) joined the group. In December 2008, the group took over Spiritbank (Tula). As of January 1, 2013, ZENIT Banking Group was present in 27 of 83 regions of the Russian Federation, its retail network numbering 183 points of sales.

The Bank's auditor is CJSC ENERGY CONSULTING/AUDIT (a member of the nonprofit partnership Institute of Professional Auditors of Russia (IPAR), primary registration number 10202014620.

en a

This press release is based on the statement of assigning a credit rating to OJSC Lipetskcombank.

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 considered 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).

AK&M Ratings are recognized by the Central Bank of Russia (for providing unsecured lending facilities – Regulation 323-P), Vnesheconombank (for granting subordinated loans) and SME Bank (for its program of lending to SME businesses), RUSNANO (when selecting banks to provide cash and settlement services to project and engineering companies implementing investment projects), and the MICEX (as a prerequisite for including bonds in the Corporate Bond Index / MICEX CBI and Municipal Bond Index / MICEX MBI calculation base and for listing bonds). By a resolution of Russia’s Government, AK&M Ratings count for the recapitalization of banks. Besides, AK&M Rating Agency is recognized by AHML and accredited by SRO National Securities Market Association.


CJSC Analysis, Consulting and Marketing Rating Agency
ul. Gubkina 3
Moscow, Russia
Press release by: Y.B. Kuznetsova
Phone no. (495) 916-70-30, fax no.: (499) 132-69-18.