The Bank qualifies as a medium-sized Russian credit institution in terms of the amount of business. As of April 1, 2016, the Bank ranked 110th among Russian banks in terms of asset size, 613th in terms of net profit.

In the first quarter of 2016, PJSC Sotsinvestbank considerably improved its assets and liabilities (+6.9% and +3.1%, respectively). Of particular note is that the Bank's earning assets saw an outstripping growth rate (+14.6%). The growth in earning assets was mainly driven by investments in the corporate loan portfolio; the level of arrears in loan assets decreased from 8.6% to 5.4% in this period.

At the same time, the rating is constrained by the Bank's 3-month negative financial result (a loss of RUB 102.0 million) due to the excess of operating expenses over operating incomes. Another negative point is that the percentage of highly liquid assets is less than 2%, considerably below the average level in Russia's banking sector.

AK&M Rating Agency assigned a credit rating to PJSC Sotsinvestbank for the first time on June 12, 2012. The last rating action in relation to the Bank was taken on July 27, 2015. All rating action announcements are available on the akmrating.ru website.

For estimation purposes, we completely rely on the reliability of information provided by the Bank. The rationale for AK&M Rating Agency's judgment on the rating may include information acquired from other sources we deem to be reliable; however, the agency does not check the input data exhaustively and disclaims all responsibility for their possible errors.

The rating assignment is based on the results of monitoring the current credit rating assigned to PJSC Sotsinvestbank and the Credit Rating Methodology for Banks and their Debt Instruments rev. November 27, 2015.

The 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.

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.

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) and is on the Central Bank of Russia's Register of Accredited Rating Agencies.

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