Press Releases / 01.11.2012

Press Release as of 01.11.2012

PJSC «IntechBank»

CJSC AK&M Rating Agency assigned the ‘A’ credit rating with a stable outlook, as per the national scale, to JSC IntechBank (license no. 2705).

The ‘A’ rating indicates that JSC IntechBank is qualified 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 Bank’s rating is essentially supported by its improving balance sheet indicators (assets, liabilities, net lending receivables, funds deposited by the customers); the increasing number of banking accounts; the good funding source diversification; the low concentration of liabilities within one group of depositors, and the absence of liquidity-specific problems.

The Bank’s assets continue to grow. In 2011, they increased by 24.2%, roughly matching the average growth rate in Russia’s banking system (23.1%). As of July 1, 2012, the Bank’s assets were estimated at RUB 14.9 billion increasing by 7.9% year-to-date and being 23.3% above last year’s result (RUB 12.0 billion as of July 1, 2011).

Net lending receivables are also on the rise: as of January 1, 2012, they increased by 27.5% year-on-year; as of July 1 2012, they further improved by 7.0% since the start of the year. Also, we appreciate the Bank’s sufficient loan asset quality and the acceptable level of loan arrears as positive signals for the rating score.

The amount of funds received from the customers increased by RUB 2,183.1 million (27.7%) in 2011 and further by RUB 624.6 million (6.2% year-to-date) as of July 1, 2012.

The number of accounts served by the Bank also increased over the period under review, which is another argument for the high rating score. The number of accounts established by legal entities increased by 545 (17.0%) in 2011, then by 426 (11.3%) in H1 2012. The number of accounts established by individuals went up by 5,663 (13.7%) in 2011 and further increased by 2,227 (4.7%) as of July 1, 2012.

The Bank’s liability structure is appreciably good which, along with the growing amount of liabilities and the relatively low concentration of obligations across the groups of depositors, contributes to the high rating score of JSC IntechBank. As of July 1, 2012, deposits made by individuals account for the greater part of the Bank’s liabilities (58.3%), the share of non-credit institutions is 26.3%. Also, the Bank’s liabilities are well spread across the groups of depositors, the largest of them accounting for 6.28% (RUB 678.9 million), the 5 largest groups for a mere 12.2% of the total amount of liabilities. The current concentration of liabilities indicates low dependence on the Bank’s large customers.

All liquidity ratios of the Bank are within acceptable ranges and meet the Central Bank of Russia’s requirements. Since our previous review, JSC IntechBank has never failed to meet the established liquidity standards. The average quality of liquidity ratios, applying AK&M Rating Agency’s estimation method, exceeds 100%, which is quite good. As a whole, the absence of liquidity-specific issues at JSC IntechBank may be regarded as one of the arguments underlying the high rating score.

At the same time, the decreasing capital adequacy ratio and the high N7 and N9.1 ratios prevent a still higher rating score.

The average quality of credit risk ratios, applying AK&M Rating Agency’s estimation guidelines, is rather low (76.1%) The N7 and N9.1 ratios are above the average level in Russia’s banking system, although still far below the maximum thresholds set by the Central Bank of Russia. As of September 1, 2012, N7 and N9.1 equaled 359.21% and 18.5%, respectively, against the maximum percentages of 800% and 50%, respectively).

Capital adequacy of the Bank (N1) is gradually decreasing (from 19.67% on January 1, 2011 to 15.74% on January 1, 2012). As of the last reporting date (September 1, 2012), this ratio was 12.94%, the lowest since our previous review.

The Bank (full business name: Open Joint Stock Company IntechBank; short business name: JSC IntechBank) has been active in the market of banking services since 1994. It possesses general banking license no. 2705 issued by the Central Bank of the Russian Federation on May 17, 2012.  

The Bank participates in the compulsory deposit insurance scheme, DIS registration no. 487 as of January 20, 2005.

JSC IntechBank provides its customers with the whole range of banking products and services involving Russian rubles and foreign currencies. Also, the Bank focuses on securities transactions.

The Bank headquartered at: Ş. Märcani street 24, Kazan city is operating a network comprising 3 branches, 14 supplementary offices and 3 stand-alone cash desks. The bank is active in 2 regions of the Russian Federation: the Republic of Tatarstan and Moscow.

The Bank’s auditor is Mid-Volga Expert Bureau LLC, a member of the nonprofit partnership SRO Russian College of Auditors; a corresponding entry (principal registration number 10205008931) was made in the Register of auditors and audit organizations of the SRO NPP Russian College of Auditors to certify this).

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This press release is based on the statement of assigning a credit rating to JSC IntechBank.

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). Pursuant to an order 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
ul. Gubkina 3
Moscow, Russia
Press release by: Y.B. Kuznetsova
Phone no. (495) 916-70-30, fax no.: (499) 132-69-18.