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Press Releases / 19.04.2013
Press Release as of 19.04.2013 PIR Bank, llc. CJSC AK&M Rating Agency affirmed the ‘B++’ credit rating (stable outlook) assigned to PIR Bank LLC (lic. no. 2655) as per the national scale.
The ‘B++’ rating indicates that PIR Bank LLC qualifies as a sufficiently reliable borrower (the highest sub-grade of the ‘B’ grade). Risk of a delay in meeting liabilities is moderate, restructuring risk for a loan / part of a loan is insignificant. We appreciate the good capital adequacy, growing assets, increasing customers’ deposits and persistently strong liquidity position as the rating drivers. PIR Bank LLC has achieved a fairly comfortable level of capital adequacy: 16.69% as of April 1, 2013. Over the 12-month period since our previous review, the Bank’s N1 ratio (CAR) has generally exceeded Russia's banking average. The Bank’s assets are on the rise. In 2012, they rose by 23.1% against 18.9% on average in Russia’s banking system. AK&M Rating Agency regards the increasing amount of funds raised from individuals and legal entities as a positive signal for the Bank’s rating. In 2012, customers’ deposits increased by RUB 1,087.4 million (25.7%). The fairly strong liquidity position of PIR Bank LLC also contributes to the rating. As of April 1, 2013 the Bank’s quick liquidity ratio was 150.44%, current liquidity ratio was 136.74% (the minimum acceptable ratios being 15% and 50%, respectively). Long-term liquidity ratio was 78.4% against the maximum acceptable percentage of 120%. At the same time, the shrinking net revenues and profits, growing share of non-performing and problem loans and loan arrears are exerting pressure on the Bank’s rating. In 2012, the Bank’s net revenue decreased by RUB 69.3 million (15.1%) year-on-year. The profit performance is also looking down: pre-tax profit decreased by RUB 59.5 million (31.3%), profit after tax by RUB 67.9 million (41.1%). In the first quarter 2013, however, pre-tax profit rose by RUB 32.2 million (72.5%), profit after tax by RUB 38.6 million (twice), implying a turn for the better. Another risk factor in AK&M Rating Agency’s view is the high share of problem and non-performing loans (together accounting for 18.3% of the loan portfolio as of January 1, 2013 – which is quite above the average ratio in Russia’s banking system). As of April 1, 2013 the combined share of problem and non-performing loans showed no change (18.3%). In addition, the loan arrears are growing (17.9% of the total loan portfolio, as of April 1, 2013, against 11.5% on January 1, 2013. However, the bank’s official representative informed that the Bank was working hard to improve the loan portfolio quality and replace the loan arrears with low-risk receivables. The bank is taking appropriate actions to collect the non-performing and problem loans. Full official name: Bank of Industrial and Investment Settlements, Limited Liability Company. Short name: PIR Bank LLC. PIR Bank LLC has been operating in the market of banking services since 1994. In January 2013, the Bank changed its previous name (CB Prominvestraschet LLC) to PIR Bank LLC. The Bank is licensed by the Central Bank of the Russian Federation, general banking license no. 2655 as of January 24, 2013. The Bank is a member of the compulsory deposit insurance system (DIS registration no. 284 as of December 9, 2004. PIR Bank LLC provides the standard range of banking products and services involving Russian rubles and foreign currencies. PIR Bank LLC is headquartered at: Novinsky Boulevard 3, bld. 1, Moscow and has no branch network. The Bank’s reports are audited by Alt-Audit LLC, certificate of membership in the nonprofit partnership SRO Audit Chamber of Russia no. 463 as of 12/28/2009, principal registration number 10401001986.
This press release is based on the statement of assigning a credit rating to PIR Bank LLC. 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 AK&M Rating Agency
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