PRESS-RELEASE

(Translation from Russian)

PJSC «PROFIN BANK» has been assigned the credit rating at the level uaAA according to the national scale 

At the meeting of the rating committee it was decided to assign a long-term credit rating of PJSC «PROFIN BANK» at the level uaAA according to the national scale. Assigning the investment level of rating, the Rating committee was guided by the following:

1. PJSC «PROFIN BANK» is a subsidiary bank of Société Générale S.A. (France), which enters the one of the largest financial groups in Eurozone. As a part of international group PJSC «PROFIN BANK» is aimed at the implementation of European quality standards of running business in the financial services market of Ukraine. Analysis of dynamics of key indicators of PJSC «PROFIN BANK» in the last two years indicates a dynamic development of the Bank. Thus, in the period from 01.04.2010 to 01.04.2012 shareholders’ equity of the Bank has increased by 58,29%, assets – by 79,04%, liabilities have increased in twice (by 100,46%), funds of individuals – more than in twice (by 139,46%), the loan portfolio – more than in 3,5 times (255,79%).

2. Capital adequacy indicators of PJSC «PROFIN BANK» demonstrate a high level of its solvency. During the last year (in the period from 01.04.2011 to 01.04.2012) shareholders’ equity of the Bank has increased in 1,6 times (by UAH 68,1 mln or by 59,07%) and as of 01.04.2012 it has reached UAH 183,4 mln. The regulatory capital of the Bank has increased by UAH 71,8 mln or by 58,51% in the same period and as of 01.04.2012 has amounted to UAH 194,4 mln. The Bank meets all the capital standards of NBU with excess, while the standard indicators of the Bank (N2 and N3) significantly exceed the market averages. As of 01.04.2012 the ratio of shareholders’ equity and assets of the Bank has been at the level 44,91%, the norm of regulatory capital adequacy (N2) has equaled to 54,05% (with the average of the banking system – 17,88%), the norm of the ratio of regulatory capital to total assets (N3) has amounted to 44,89% (the average of the system – 14,51%).

3. Being a part of the large international financial group Société Générale Group, PJSC «PROFIN BANK» is provided with the financial support from its key shareholder at the unprecedented high level for Ukraine. The Agency’s analysis shows that at the beginning of 2012 Société Générale Group possessed the consolidated assets of EUR 1,181 trln, the loan portfolio of the Group was estimated of EUR 367,5 bn. This statistics indicates a significant work scale of Société Générale Group even within the European Union.

4. The Agency positively estimates the assets quality of PJSC «PROFIN BANK». As of 01.04.2012 the loan portfolio occupies 48,92% of total assets. The priority type of lending for the Bank is lending the individuals, which accounts for 97,12% of the total loan portfolio. 79,94% of the loan portfolio of individuals consists of loans for purchasing transport vehicles. The Bank solves the problem of loan risks diversification by providing relatively small amounts of loans to a separate borrower, as indicated by a low indicator of the large loan risks norm (N8), which has amounted to 20,58% as of 01.04.2012 (the requiring indicator – not more than 800%). The dynamics analysis of indicators of the loan portfolio quality shows a confident decrease in the Bank’s sensitivity to loan and currency risks. Thus, proportion of loans and clients debt in foreign currency in the total loan portfolio of the Bank has decreased from 17,58% down to 2,84% in the given period, the proportion of non-performing loans of the Bank has reduced from 13,74% down to 9,43% in the same period, and the ratio of loan provisions to the loan portfolio has decreased from 23,29% down to 14,15%.

5. According to the results of the Q1 of 2012 net profit of the Bank has amounted to UAH 66 th. that is by 64,13% less than in the Q1 of 2011. At the same time, it has been observed the growth of all key components of the Bank’s income: net interest income has grown in 3,2 times, net commission income – in 1,8 times, the result from trade in foreign currency – in 3,5 times. Profit before taxes has increased more than in 3 times (by 213,85%) and has amounted to UAH 838 th. following the results of the Q1 of 2012. One of the main factors influenced the decrease in the Bank’s net profit, has become a rise of loan provisions (by 45,39% or by UAH 8,8 mln), which has resulted from a significant increase of the Bank’s loan portfolio (by 139,27% or by UAH 116 mln).

6. The norms analysis of instant, current and short-term liquidity of the Bank (N4, N5, N6) as of 01.04.2011 and 01.04.2012 demonstrates the Bank’s excessive performance of established requirements of NBU. Particularly, as of 01.04.2012 the norm of the Bank’s instant liquidity (N4) has amounted to 86,51% (the average of the system – 54,25%), the norm of current liquidity (N5) – 167,04% (the average of the banking system – 72,88%), the norm of short-term liquidity (N6) – 132,41% (the average of the Ukrainian banks – 93,41%). Therefore, current liquidity of the Bank may be characterized as excessive that is a guarantee of timely performance of undertaken liabilities and also indicates significant reserves for further increasing its active operations.

Analytical service of RA «Expert-Rating»

Assignment of credit rating to PJSC «PROFIN BANK» (english version) - 29.05.2012