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Press Releases / 03.07.2013
Press Release as of 03.07.2013 OJSC Bank «Zapadny» CJSC AK&M Rating Agency upgraded the credit rating assigned to OJSC Bank Zapadny (license no. 2598) as per the national scale from ‘B++’ to ‘A’. The outlook is stable. The ‘A’ rating indicates that The rating action is motivated by the persisting positive trends in the Bank’s development. We also appreciate the low concentration of liabilities across the groups of depositors, improvements in the asset st The Bank’s equity capital growth rate is outstripping the average growth percentage in Russia’s banking system. In 2012, the Bank increased its equity by 29.3% (RUB 432.4 million) against 16.6% on average in the banking sector. Since the start of the year, the Bank has added RUB 1,048.6 million to its equity capital, achieving an impressive result of +54.9%. At the same time, the Bank’s authorized capital grew almost twice, which we regard as a positive signal. The total net income of by RUB 307.7 million (55.4%) in 2012, by RUB 87.1 million (44.6%) in the first quarter of 2013. One of the mainstays for the Bank’s rating is its high earning power. In 2012, pre-tax profit increased 2.8-fold, net profit soared almost 27 times. The first quarter of 2013 contributed to this favorable trend as pre-tax profit increased 4-fold, profit after tax went up 10.7 times. The Bank’s borrowings from individuals are increasing in absolute terms, their growth rate exceeding the average percentage in Russia’s banking sector. The amount of funds raised from this source increased by 24.0% in 2012 and further improved by 11.4% in the first quarter of 2013 (against 20.0% and 3.4%, respectively, in the banking sector). Owing to the high percentage of personal deposits, the Bank’s obligations are well spread across the groups of depositors. As of June 1, 2013 As of May 1, 2013, the largest group of depositors accounted for 0.72% (RUB 107.1 million), the ten largest investors (groups of investors) for 2.87% of the Bank’s liabilities. The improvements in the Bank’s asset st: the share of net loans receivable increased from 21.0% to 55.0%, the share of investments in securities decreased from 66.0% to 29.2%. In absolute terms, net loans receivable are also on a positive trend, increasing by RUB 3,543.9 million (118.2%) in 2012, by RUB 2,756.3 million (42.1%) in the first quarter of 2013. It will be noted that the Bank’s loan portfolio is of good quality and loan arrears are low. At the same time, the structural instability of the Bank’s net income profile and fairly high Bank The shares of net interest margin and net fee & commission income in the Bank’s total incomes were subject to strong fluctuations in 2012 and the first quarter of 2013. The Since late last year, this ratio has been several times the average percentage in Russia’s banking sector. The total magnitude of insider-specific risk ( It will be noted that this ratio failed to meet the Central Bank of Russia’s requirement on May 7, 2013 when it reached 3.76% against the maximum acceptable percentage of 3%. However, this single failure may be regarded as incidental for the Bank and does not affect its rating. As of June 1, 2013, the Full name: Open joint stock company Bank Short name: rubles and foreign currencies (without accepting money deposits from individuals) as of July 23, 2012 and a license for accepting money deposits denominated in Russian rubles and foreign currencies from individuals as of July 23, 2012. The Bank participates in the compulsory deposit insurance scheme, DIS registration certificate no. 695 as of February 24, 2005. rubles and foreign currencies and is active in the securities market. Today, the Bank is committed to developing its retail banking business and ambitious to expand in the regions. Headquartered at Profsoyuznaya street 8, bld. 1, Moscow, The Bank’s auditor is Estimation and Audit Center LLC, a member of the nonprofit partnership Auditor Association Sodruzhestvo, primary registration number (ORNZ) 11006005961.
This press release is based on the statement of assigning a credit rating to RUSSLAVBANK. 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. 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 (for the Corporate Bond Index / MICEX CBI and Municipal Bond Index / MICEX MBI calculation and bond listing purposes). 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.
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