March 29, 2013 the rating committee of RA «Expert-Rating» has decided to confirm the credit rating of PJSC «CREDIT AGRICOLE BANK» and the Bank’s bonds of Series А and В at the level uaAA+ according to the national scale. The borrower with rating uaAA+ is characterized by a very high solvency in comparison with other Ukrainian borrowers. Making decision about confirming the credit rating according to the national scale, the Agency was guided by the results of the Bank’s activity in 2012.

Table 1

Key balance sheet indicators of PJSC «CREDIT AGRICOLE BANK»

according to the results of 2012

th. UAH, %, p.p.

Indicators	31.12.2012	31.12.2011	Change	Growth rate, %
Shareholders’ equity	1 556 782	719 973	836 809	116,23%
Authorized capital	1 050 000	1 050 000	0	-
Shareholders’ equity/Assets ratio, %	11,82%	10,51%	1,30 p.p.	-
Total liabilities	11 618 963	6 127 885	5 491 078	89,61%
Including liabilities in foreign currency	5 003 835	3 087 415	1 916 420	62,07%
Funds of banks	1 045 034	2 105 683	-1 060 649	-50,37%
Funds of individuals	3 287 087	2 360 767	926 320	39,24%
Funds of legal entities	6 490 849	1 256 814	5 234 035	416,45%
Total assets	13175745	6 847 858	6 327 887	92,41%
Liquid assets (Cash and cash equivalents + Trading securities + Funds in other banks)	3 107 951	1 337 802	1 770 149	132,32%
Customer credits and debt	9 864 136	5 527 681	4 336 455	78,45%
Loan provisions	396 896	503616	-106 720	-21,19%
Loan provisions/ customer credits and debt ratio, %	4,02%	9,11%	-5,09 p.p.	-
Securities (Securities for sale + Securities for redemption)	1 240	66 345	-65 105	-98,13%
Liquid assets/Liabilities ratio, %	26,75%	21,83%	4,92 p.p.	-

Source: data of PJSC «CREDIT AGRICOLE BANK», calculations by RA «Expert-Rating»

 

1. The 2012 year was very dynamic for PJSC «CREDIT AGRICOLE BANK». In the fourth quarter of 2012 there was a merger between PJSC «CREDIT AGRICOLE BANK» and PJSC «CIB Credit Agricole». Dynamics of key balance sheet indicators of the Bank in 2012 compared to 2011 indicate a significant increase:

• Shareholders’ equity of the Bank has grown by 116,23%;
• Liabilities have increased by 89,61%;
• Loan portfolio including reserves has grown by 78,45%;
• Assets have increased by 92,41%.

As a result, in 2012 PJSC «CREDIT AGRICOLE BANK» has considerably increased its proportion in the Ukrainian market. Thus, PJSC «CREDIT AGRICOLE BANK» has moved from the thirteenth position to the nineteenth position in 2012 in the ranking of NBU in terms of assets. Accordingly, the proportion of PJSC «CREDIT AGRICOLE BANK» in the banking system of Ukraine in terms of assets in 2012 has grown from 0,65% up to 1,17%.

 

2. PJSC «CREDIT AGRICOLE BANK» has also optimized the structure of the resource base in 2012. The amount of the banks’ funds in liabilities of PJSC «CREDIT AGRICOLE BANK» has reduced by 50,37%, while funds of individuals have grown by 39,24%, and funds of legal entities – by 416,45%. As a result, as of 31.12.2012 funds of the banks have occupied almost 9% of liabilities, funds of individuals – 28,29%, and funds of legal entities – 55,86%. These changes in the resource base structure of PJSC «CREDIT AGRICOLE BANK» will positively affect the cost of resources for the Bank and the stability of its resource base.

3. Changes of balance sheet indicators have been reflected in the dynamics of the Bank’s norms. Thus, the regulatory capital of PJSC «CREDIT AGRICOLE BANK» has grown by 26,5% in 2012, the norm of the regulatory capital adequacy (N2) has increased by 4,55 p.p. and as of 31.12.2012 this norm has exceeded by 1,33 p.p. the average of this indicator on the system.

The Agency also notes a considerable improvement in norms of liquidity of PJSC «CREDIT AGRICOLE BANK»: the norm of instant liquidity has grown by 26,87 p.p., the norm of current liquidity has grown by 16,55 p.p., the norm of short-term liquidity – by 12,36 p.p.

Table 2

Key norms of PJSC «CREDIT AGRICOLE BANK» according to the results of 2012

th. UAH, %, p.p.

Norms	The norm set by NBU	31.12.2012		31.12.2011		Change, th. UAH, p.p.
		The Bank’s norm	The average of the system	The Bank’s norm	The average of the system
Regulatory capital (N1), th. UAH	Not less than UAH 120 000 th.	1917683	-	1028444	-	889 239
Regulatory capital adequacy (N2), %	Not less 10%	19,39%	18,06%	14,84%	18,90%	4,55 p.p.
Regulatory capital/Total assets ratio (N3), %	Not less 9%	14,22%	14,89%	14,03%	14,96%	0,19 p.p.
Instant liquidity (N4), %	Not less 20%	74,00%	69,26%	47,13%	58,48%	26,87 p.p.
Current liquidity (N5), %	Not less 40%	79,22%	79,09%	62,67%	70,53%	16,55 p.p.
Short-term liquidity (N6), %	Not less 60%	89,72%	90,28%	77,36%	94,73%	12,36 p.p.
Norm of large loan risks (N8), %	Not more 800%	94,94%	172,91%	92,58%	164,46%	2,36 p.p.
Norm of the maximum amount of loans, guarantees and sureties, issued to the insiders (N10), %	Not more 30%	1,33%	0,37%	5,12%	2,51%	-3,79 p.p.

Source: data of PJSC «CREDIT AGRICOLE BANK», NBU, calculations by RA «Expert-Rating»

 

4. According to the results of 2012 net interest income of PJSC «CREDIT AGRICOLE BANK» has grown by 146,63% compared to 2011, net commission income has increased by 16,56%, and profit of the Bank in 2012 has exceeded in 185 times the same indicator of 2011. The indicated statistics has demonstrated a significant growth of profitability of the Bank’s operations in Ukraine that has positively affected its financial state.

Table 3

Separate indicators of income and expenses of PJSC «CREDIT AGRICOLE BANK» in 2011-2012

th. UAH, %, p.p.

Indicators	2012	2011	Change	Growth rate, %
Net interest income	792 802	321 449	471353	146,63%
Net commission income	210488	180581	29907	16,56%
Net commission income/ Net interest income ratio	26,55%	56,18%	-29,63 p.p.	-
Result from operations with foreign currency	69 461	35 311	34150	96,71%
Administrative and other operating expenses	706608	604143	102 465	16,96%
Net profit	408 502	2 206	406 296	18417,77%
ROE, %	26,24%	0,31%	25,93 p.p.	-

Source: data of PJSC «CREDIT AGRICOLE BANK», calculations by RA «Expert-Rating»

Therefore, in 2012 PJSC «CREDIT AGRICOLE BANK» has demonstrated a positive dynamics of development. Significant growth of key balance sheet indicators, optimization of the resource base structure, increase in the market share, growth of the solvency reserve and liquidity, as well as growth of profitability of operations of PJSC «CREDIT AGRICOLE BANK» have become not only the result of the merger process of the two banks of the group Crédit Agricole in Ukraine, but also the consequence of a balanced strategy of the banking business of Crédit Agricole in Ukraine.

Analytical service of RA «Expert-Rating»

Confirmation of PJSC «CREDIT AGRICOLE BANK» (english version) - 29.03.2013