March 28, 2013 the rating committee of RA «Expert-Rating» has decided to confirm the credit rating of PJSC «CB «GLOBUS» (35591059) at the level uaA- according to the national scale. The borrower with rating uaA- is characterized by a 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 analysis of the Bank’s activity in 2012.

1. Shareholders’ equity of PJSC «CB «GLOBUS» has grown by 9,04% in 2012, liabilities have reduced by 5,07%, loan portfolio including reserves has grown by 21,33%, and the ratio between reserves and credits has remained almost unchanged and has been fixed at the level 15,45%.

At the same time, the Agency notes a change in the resource base structure of the Bank in 2012: funds of banks have reduced by 44,29%, funds of individuals have increased by 10,23%, funds of legal entities have decreased by 20,76%. The Agency appreciates the changes in the resource base structure of PJSC «CB «GLOBUS», particularly, the reduction of the proportion of the banks’ funds in liabilities.

Table 1

Key balance sheet indicators of PJSC «CB «GLOBUS» according to the results of 2012

th. UAH, %, p.p.

Indicators	31.12.2012	31.12.2011	Change	Growth rate, %
Shareholders’ equity	217169	199 163	18 006	9,04%
Authorized capital	160 000	160 000	0	-
Shareholders’ equity/Assets ratio, %	12,61%	11,16%	1,45 p.p.	-
Total liabilities	1 504 513	1 584 920	-80 407	-5,07%
Including liabilities in foreign currency	852 555	780 293	72 262	9,26%
Funds of banks	579 478	1 040 179	-460 701	-44,29%
Funds of individuals	425 749	383 783	41 966	10,93%
Funds of legal entities	67 769	85 521	-17 752	-20,76%
Total assets	1721682	1 784 083	-62 401	-3,50%
Liquid assets (Cash and cash equivalents + Funds of obligatory reserves in NBU + Funds in other banks)	576 394	1 102 175	-525 781	-47,70%
Customer credits and debt	551205	454 294	96 911	21,33%
Loan provisions	85152	69747	15 405	22,09%
Loan provisions/ customer credits and debt ratio, %	15,45%	15,35%	0,10 p.p.	-
Liquid assets/Liabilities ratio, %	38,31%	69,54%	-31,23 p.p.	-

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

2. The trends of changes in key balance sheet indicators have reflected in the dynamics of the Bank’s norms. The regulatory capital of PJSC «CB «GLOBUS» has grown by UAH 5,119 mln, or by 2,58% in 2012. The adequacy of the regulatory capital of the Bank has reduced by 4,84 p.p. down to 10,89% that meets the requirements set by NBU with reserve of 0,89 p.p. At the same time, N3 has grown by 1,64 p.p. and, as a consequence, has been complied by the Bank with reserve of 3,68 p.p. up to the limit set by the regulator.

The differently directed dynamics has characterized the move of the liquidity norms of the Bank. Instant liquidity has grown by 20,81 p.p., current liquidity has decreased by 13,23 p.p. and short-term liquidity of PJSC «CB «GLOBUS» has grown by 12,41 p.p. All the indicators of the Bank’s liquidity have been complied with large reserve to the limit norms set by NBU, and N6 has even exceeded the average of the market. As a whole, in the Agency’s opinion, at the beginning of 2013 PJSC «CB «GLOBUS» has been in the state of excess liquidity.

Table 2

Key norms of PJSC «CB «GLOBUS» 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.	203442	-	198323	-	5 119
Regulatory capital adequacy (N2), %	Not less 10%	10,89%	18,06%	15,73%	18,90%	-4,84 p.p.
Regulatory capital/Total assets ratio (N3), %	Not less 9%	12,68%	14,89%	11,04%	14,96%	1,64 p.p.
Instant liquidity (N4), %	Not less 20%	51,22%	69,26%	30,41%	58,48%	20,81 p.p.
Current liquidity (N5), %	Not less 40%	62,16%	79,09%	75,39%	70,53%	-13,23 p.p.
Short-term liquidity (N6), %	Not less 60%	101,89%	90,28%	89,48%	94,73%	12,41 p.p.
Norm of large loan risks (N8), %	Not more 800%	492,63%	172,91%	610,32%	164,46%	-117,69 p.p.
Norm of the maximum amount of loans, guarantees and sureties, issued to the insiders (N10), %	Not more 30%	0,46%	0,37%	0,47%	2,51%	-0,01 p.p.

Source: data of PJSC «CB «GLOBUS», NBU, calculations by RA «Expert-Rating»

3. PJSC «CB «GLOBUS» has considerably improved the profitability indicators of operations in 2012. Thus, net interest income of the Bank has grown by 104,76%, net commission income has increased by 47,36%, and result from operations with foreign currency – by 38,77%.

PJSC «CB «GLOBUS» has finished the 2012 year with profit of UAH 18,006 mln that is by 18,04% more than the same indicator of 2011.

Table 3

Separate indicators of income and expenses of PJSC «CB «GLOBUS» in 2011-2012

th. UAH, %, p.p.

Indicators	2012	2011	Change	Growth rate, %
Net interest income	117 831	57 545	60286	104,76%
Net commission income	8158	5536	2622	47,36%
Net commission income/ Net interest income ratio	6,92%	9,62%	-2,70 p.p.	-
Result from operations with securities in the trading portfolio of the bank	-3652	-2 788	-864	-
Result from operations with foreign currency	11 719	8 445	3274	38,77%
Administrative and other operating expenses	45267	31849	13 418	42,13%
Net profit	18 006	15 254	2 752	18,04%
ROE, %	8,29%	7,66%	0,63 p.p.	-

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

 

Therefore, in 2012 PJSC «CB «GLOBUS» has shown a good dynamics of development, namely: increase in key balance sheet indicators, optimization of the resource base structure, growth of norms of instant and short-term liquidity, strengthening of capital norms N1 and N3. The revealed trends have been accompanied by the growth of the profitability of the Bank’s operations that has also positively affected its financial stability and its credit rating.

 

Analytical service of RA «Expert-Rating»

Confirmation of PJSC «CB «GLOBUS» (english version) - 28.03.2013