|
Press Releases / 13.02.2013
Press Release as of 13.02.2013 Commercial Bank «Transnational Bank» (Limited) CJSC AK&M Rating Agency upgraded the credit rating of CB Transnational Bank (Limited) (license no. 2108) from ‘B++’ to ‘A’ (stable outlook) as per the national scale.
The ‘A’ rating indicates that CB Transnational Bank (Limited) 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. The rating score is unlikely to change during the rating period. The Bank's rating is supported by the improving key performance indicators, the high quality of the loan portfolio, the high profitability and return ratios. In 2012, the Bank increased its equity and authorized capital, assets, loan portfolio, and customers’ funds. Over the last twelve months, equity capital of CB Transnational Bank (Limited) increased by RUB 419.9 million (60%), including a RUB 140 million increase in the authorized capital. The loan portfolio grew almost twice, amount of funds deposited by legal entities gained 66%, amount of funds deposited by individuals increased 2.2-fold. The vigorous growth of the Bank’s KPIs is favorable for its rating score. The Bank’s loan portfolio is of high quality. Loans of quality grade 2 account for most of the loan portfolio (approximately 90% on December 1, 2012), while the combined relative weight of the NPLs and problem loans is 1.5%. Loan arrears account for about 0.8% of the total loan receivables and their equivalents as of the same date, which is far below the average level in Russia's banking sector (3.9%). About 89% of the loans are granted to legal entities, approximately 10% to individuals. CB Transnational Bank (Limited) enjoys high profitability and return ratios. In 2012, its pre-tax profit amounted to RUB 372.5 million, a much better result than in 2011 (RUB 23.7 million (form 102). At the end of the 3rd quarter 2012, its ROA and ROE ratios were 3.5% and 28.1%, respectively, exceeding the average levels in Russia’s banking sector (2.3% and 18.3%, respectively). Preliminary results of the Bank’s operations in the fourth quarter 2012 imply still higher annual return ratios. The high profitability and return ratios support the Bank’s rating. At the same time, the low capital adequacy and current liquidity ratios, the high amount of major credit risks exert pressure on the Bank’s rating score. The Bank’s capital adequacy ratio is rather low: below 11% since May 2012, approaching the lower threshold of 10% on some reporting dates. Throughout 2012, CAR was below the average ratio in Russia’s banking sector. The equity capital increase in 2012 did not result in a higher CAR (N1 being 10.38% as of the start of 2013). In 2012, the Bank’s current liquidity ratio was low all year through. Although rising to 70% on some reporting dates, the Bank’s current liquidity ratio was below 60% on half of the monthly reporting dates in 2012, occasionally approaching the lower threshold. As of January 1, 2013, the Bank’s current liquidity ratio was 52.4%. The low CAR and liquidity ratio restrict the Bank’s rating score. Another negative signal is the fairly high amount of major credit risks (N7). Although below the upper limit, this ratio (478.2% as of December 1, 2012) is well above the average value in Russia’s banking sector (212.3% as of the same date). It will be noted that on some reporting dates in 2012, the N7 ratio of CB Transnational Bank (Limited) exceeded 600%. Full business name: Commercial Bank «Transnational Bank» (Limited). Short business name: CB Transnational Bank (Limited). The Bank has been active in the market of banking services since 1992, reg. no. 2108 at the Bank of Russia. The Bank possesses a license for banking operations involving rubles and foreign currencies (without accepting money deposits from individuals) as of December 26, 2012, a license for accepting deposits of precious metals as of August 27, 1999, and a license for accepting money deposits from individuals in rubles and foreign currencies from physical persons as of December 26, 2012. Headquartered in Moscow, CB Transnational Bank (Limited) has branches in St. Petersburg, Yekaterinburg, Nizhny Novgorod, Volgograd and Bodaybo (Irkutsk region). The bank provides all types of services involving Russian rubles and foreign currencies, lends to legal entities and individuals, carries out transactions with precious metals.
This press release is based on the statement of assigning a credit rating to CB Transnational Bank (Limited). The credit rating, along with any information and conclusions provided in this press release, only conveys our opinion on the Bank's credit standing 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
|
