Rating Agency “RIA Rating” confirmed the Bank “Elite” credit rating on national scale at level “BBB+”, forecast – “stable”.
MOSCOW, Nov 20./strong>. Rating Agency “RIA Rating” that is part of the media holding MIA “Russia today”, confirmed the Bank “Elite” credit rating on national scale at level “BBB+”. The rating Outlook was defined as stable.
Justification of rating
The main factor of supporting Bank’s rating “Elite”, as before, is the high level of support from the shareholder, which is the administration of the Kaluga region Ministry for economic development of Kaluga region. The presence of a strong shareholder provides the Bank with a number of competitive advantages. Also increases the rating of the high interest of the main shareholder in the development Bank. Over the past two years the Bank received assistance from the shareholder in the form of increase of share capital and subordinated loan. So in August of 2014 and 2015, the Bank received a total of 500 million rubles. According to experts RIA Rating, Bank “Elita” in case of need can expect to receive additional support in the form of capital increases or the temporary accommodation of funds in the accounts of the Bank from the shareholder, or other third parties.
As an important factor that increases the rating score is the high capital adequacy ratio. The capital adequacy ratio of the Bank on October 1, 2015 was 23.1%, which is much higher than values from comparable banks (13-18%). The adequacy ratio H1.1 and H1.2 are also at a high level of 14.9%. A significant reserve of equity created by the high adequacy ratio, indicates a high stability of the Bank, including the possible loss and good development potential in the medium term.
As the factor negatively influencing the rating score is the liquidity. The Bank has a relatively low ratio of liquid assets to liabilities with relevant maturity, high volatility of liquid assets and significant concentration of customer funds.
Restrictions on the Bank’s rating is “Elite” imposes a relatively small amount of assets. Total assets at the current level imposes restrictions on the activities of the Bank, allowing the Bank management to fully pursue the policy of diversification and risk minimization. In particular, the Bank has limited opportunities to diversify by working with large and medium corporate clients.
The limiting factor for the rating of the Bank “Elita” is the loss ratio. For the first nine months of 2015 net loss was $ 151 million rubles, and return on assets over the last 12 months is -5%.
General information about the Bank “Elita”
Bank “Elite” is small in terms of assets, universal Russian Bank. Its activities the Bank operates since 1991.
Bank “Elite” has a license of the Central Bank of the Russian Federation No. 1399 of April 1, 2014. Since November 2004 the Bank joined the Deposit Insurance System (DIS).
According to “RIA Rating” On October 1, 2015, the Bank “Elite” took 467-th place by assets in Russia, 432-e a place on volume of capital, 385-e a place on volume of the loan portfolio and 443-e a place on volume of deposits of individuals.
The departments of “Elite” consists of: head office in Kaluga, 4 additional offices located in Kaluga, Kirov, Obninsk, and Sukhinichi, 2 operating cash desks outside the room.
The Bank’s auditor is LLC “banks-expert”.
RIA Rating is a universal rating Agency, the media group MIA “Russia today”, specializing in the assessment of companies, regions, banks, industries, and credit risks. The main activities of the Agency are: the assignment of credit ratings and ratings for banks, enterprises, regions, municipalities, insurance companies, securities, other economic objects; an economic study in the financial, corporate and public sectors. MIA “Russia today” is an international media group whose mission is prompt, balanced and objective coverage of events in the world, informing the audience about different perspectives on key events. RIA Rating in the composition of the MIA “Russia today” is a line of the Agency information resources, including: RIA Novosti, R-Sport, RIA real Estate, Prime, InoSMI. MIA “Russia today” is the leader of the citation index among Russian media and increasing citation of its brands abroad. The Agency also takes a leading position in citation in Russian social networks and the blogosphere.