March 05, 2012 RA «Expert-Rating» improves the credit rating of PJSC «CB «GLOBUS» up to the level uaВВВ+ according to the national scale. When making a decision about improving the credit rating, the Agency was guided by the results of the Bank’s activity for the 2011 (table).

Table

Key performance indicators of PJSC «CB «GLOBUS» (th. UAH, %)

Source: NBU data, calculations by RA «Expert-Rating»

1. Bank’s assets have increased in 1,6 times (by 60,24%), having reached UAH 1,8 bn. Liquid assets have grown more than in twice and have amounted to UAH 613,8 mln. as of 01.01.2012, that corresponds to 34,4% of Bank’s assets. The loan portfolio of the Bank has increased by 31,41% or by UAH 108,6 mln. over the same period and it has constituted UAH 454,3 mln. following the results of 2011. Despite the growth rate of lending by PJSC «CB «GLOBUS» exceeds the average industry dynamics, a small proportion of loan portfolio in Bank’s assets (25,46%), on the one hand, shows that the Bank owns the big resource potential of increasing its portfolio in future, on the other hand, indicates that under current market conditions the Bank conducts a rather restrained lending policy, which is based on fairly strict standards of risk assessment. Thus, loan provisions have increased just by 11,05% over the period from 01.01.2011 to 01.01.2012, the loan provisions/loan portfolio ratio has decreased by 2,81 p.p. and as of 01.01.2012 it has constituted 15,35% that indirectly indicates the decrease of risk concentration in the Bank’s loan portfolio. At the same time, the average loan provisions/loan portfolio ratio of the Ukrainian banking system has constituted 18,16% on the same date.  

2. Bank’s liabilities have grown in 1,7 times (by 70,66%) over the 2011 and have amounted to UAH 1,6 bn. as of 01.01.2012. The highest rates of increase have been demonstrated by funds of individuals – in twice (by 104,02%) or by UAH 195,7 mln., the growth in funds of legal entities has constituted 61,89% or UAH 32,7 mln., the increase in funds raised from other banks has amounted to 60,18% or UAH 390,8 mln. At the same time, as of 01.01.2012 the largest proportion in the structure of resources raised by the Bank has belonged to the commitments to other banks (65,62%), funds of individuals and legal entities have occupied 36,9% and 5,4% respectively. When evaluating the diversification level of the Bank’s resource base, the Agency took into account the period of the Bank’s activity in the market, which is relatively short, and the branching of the regional network, which is also under development. As a whole, as of 01.01.2012, the Agency estimates the diversification of the Bank’s resource base as satisfactory.

3.  Bank’s net profit has increased by 83,78% or by UAH 6,9 mln. following the results of 2011 in comparison with 2010 and it has amounted to UAH 15,1 mln. as of 01.01.2012. The high increase in Bank’s profit has been caused by the increase in net interest income by 48,56% or by UAH 18,8 mln. as well as by the slowdown of the growth dynamics of loan provisions. ROE has increased by 3,14 p.p. over the period from 01.01.2011 to 01.01.2012: from 4,46% up to 7,6% that clearly demonstrates the increase in the efficiency of the Bank’s activity.

4. At the beginning of 2012, Bank’s shareholders’ equity has amounted to UAH 199 mln. that is by 7,8% more, than at the beginning of 2011. The equity/assets ratio has reduced by 5,43 p.p. over the period from 01.01.2011-01.01.2012 due to the dynamic development of the Bank and to the need in increasing the use efficiency of its own resources, and this ratio has constituted 11,16% on the reporting date. Besides, the given indicator meets the requirement of maintaining the adequate solvency of the Bank.

Therefore, the analysis of key performance indicators of PJSC «CB «GLOBUS» following the results of 2011 indicates the sustained high rates of the Bank’s development. Thus, the Bank has significantly increased its resource base as well as its assets in 2011, that has caused the Bank’s rise by five positions higher in its group of banks by asset volume (according to the NBU ranking). The Bank conducts a rather restrained lending policy, directed to the adequate risk assessment, despite the proportion of loan portfolio in Bank’s assets remains at the low level (25,46%) for objective reasons. At the same time, the growth rate of clients’ credits and debt (31,41%) exceeds the average market dynamics (8,44%), but the loan provisions/loan portfolio ratio (15,35%), on contrary, is at the level lower than the average on the banking system of Ukraine (18,16%), that indicates the efficiency of the policy, realized by the Bank. An obvious result of the optimal management of Bank’s assets and liabilities has become the high growth rates in profit, ROE and liquidity, while maintaining the capital adequacy at the appropriate level. 

Analytical service of RA «Expert-Rating»

Confirmation of PJSC «CB «GLOBUS» (english version) - 05.03.2012