PRESS-RELEASE

(Translation from Russian)

The credit rating of PJSC «BROKBUSINESSBANK»  is confirmed at the level uaAA

June 12, 2012 RA «Expert-Rating» has decided to confirm the credit rating of PJSC «BROKBUSINESSBANK» and of the Bank’s bonds of Series B at the level uaAA according to the national scale. The borrower with rating uaAA is characterized by a high solvency compared to other Ukrainian borrowers. Making decision of confirming the credit rating according to the national scale, the Agency was guided by key results of the Bank’s activity in the Q1 of 2012.

Table 1

Key indicators of PJSC «BROKBUSINESSBANK», th. UAH, p.p.,%

Source: data of PJSC «BROKBUSINESSBANK», calculations by RA «Expert-Rating»

1. In the period from 01.04.2011 to 01.04.2012 the Bank’s assets have increased by 21,74% and have reached to UAH 20,201 bn following the results of the Q1 of 2012. Liabilities have grown by 24,93% in the same period and have amounted to UAH 17,759 bn, loan portfolio has increased by 5,85% and has amounted to UAH 13,131 bn. Shareholders’ equity of the Bank has amounted to UAH 2,442 bn on 01.04.2012 that is by 2,64% or by UAH 62,8 mln more, than as of 01.04.2011. During the given period the Bank has actively attracted the resources in the internal market: funds of individuals have increased by 34,99% or by UAH 2,283 bn and have amounted to UAH 8,806 bn as of 01.04.2012, funds of legal entities have increased by 22,22% or by UAH 794,2 mln, having amounted to UAH 4,368 bn, funds raised from other banks have increased by 13,82% or by UAH 436,7 mln and have amounted to UAH 3,596 bn.

2. A good level of Bank’s provision by own resources has enabled it to increase assets by more rapidly, than capital, which has resulted in a slight decrease of capital adequacy in the period from 01.04.2011 to 01.04.2012. At the same time, the Agency emphasizes that the Bank still performs all the requirements set by NBU to the norms of capital. Thus, as of 01.04.2012 the norm of regulatory capital adequacy (N2) has amounted to 14,50% (with the required norm – not less than 10%), the norm of the ratio of regulatory capital to total assets (N3) has amounted to 12,67% (with the norm – not less than 9%). March 20, 2012 the shareholders of PJSC «BROKBUSINESSBANK» have made a decision about the next authorized capital increase by UAH 473,76 mln – up to UAH 473,76 mln that, in its turn, will result in the improvement of the norms N2 and N3.

 3. Customer credits and debt in foreign currency of the Bank have decreased by 4,26% or by UAH 157,6 mln, and its proportion in the loan portfolio has reduced by 2,85 p.p. and as of 01.04.2012 it has amounted to 26,97% that indicates a gradual decrease in the Bank’s sensitivity to currency risks. The norm of large loan risks N8 (as of 01.04.2012 N8 has amounted to 283,58%) and the norm of the maximum amount of loans, guarantees and sureties issued to insiders N10 (as of 01.04.2012 N10 has amounted to 4,80%) indicate a relatively low concentration level of large loan and insiders risks in the loan portfolio of the Bank.

4. Despite some decline in liquidity, marked as of 01.04.2012 compared to 01.04.2011, the Bank remains to comply with all the NBU’s requirements, set for the norms of liquidity. Thus, as of 01.04.2012 the norm of instant liquidity (N4) has amounted to 31,13% (with the required norm – not less than 20%), the norm of current liquidity (N5) has amounted to 58,83% (the minimal norm – not less than 60%). The Bank has finished the first quarter of 2012 with net profit of UAH 2,065 mln. Net commission income of the Bank has amounted to UAH 46,6 mln.

Therefore, according to the results of the Q1 of 2012 the activity of PJSC «BROKBUSINESSBANK» is profitable, the Bank has continued to attract resources and to increase its active operations. Indicators of liquidity and solvency enable the Bank to perform all the undertaken liabilities in full. And the next increase of the authorized capital will significantly increase the reserve of the Bank’s capital adequacy.

Analytical service of RA «Expert-Rating»

Confirmation of PJSC «BROKBUSINESSBANK» (english version) - 12.05.2012