Rating Agency RAEX estimated that four of the 30 largest Bank by assets — VTB24, Promsvyazbank, MDM Bank and Ural Bank for reconstruction and development (UBRD) — to have minimal margin ratio capital adequacy (N1.2) on June 1. In accordance with the requirements of the Central Bank, the rate should not fall below 6%. From listed banks, the figure below 7% and to lower it to the minimum impairment total less than 1.5% of the loan portfolio, according to a review RAEX. This level of margin of safety the Agency believes is critical and believes that these banks need additional capitalization in the range of 19 billion rubles.
The most worrying situation — the Bank UBRD, whose standard is at the level of 6.1%, it would be broken if the Bank creates a reserve of 130 million rubles, the reserve will be required when impairment of only 0.1% of the loan portfolio. In General, according to the Agency, the Bank, to avoid falling below the standard allowed control of the level needed recapitalization in the amount of RUB 4.5 billion.
Head of Department of control of credit risks and capital adequacy UBRD Victoria Ivanova believes that the capital adequacy ratio is at a critical level. “If the Bank to be recapitalized by 4.5 billion rubles, the level of H1.2 will reach 8%, and in this case, the question arises: why do we have idle capital, because high values on this standard talking about inefficient resource management?” — said Ivanov.
From the PSB the ratio is 6.4%, it will be reduced to a minimum in case of impairment of 0.5% of the loan portfolio and the creation of reserves of 4.7 billion RUB In the beginning of January the ratio of the Bank was 7.4%. According to the Agency, the Bank needed recapitalization in the amount of 12.7 billion rubles. But in RAEX such a significant increase in capital up to the end of 2016 is considered unlikely — due to loss-making Bank “Revival”, which is part of the group “PromSvyazCapital”. In RAEX believe that the deterioration of the situation in both banks owners can attract investors to PSB for additional capitalization of the Bank.
In the Bank account for the capital reduction on June 1, the purchase of Pervobank and the relevant technical deductions. Thus a press-service assures that after the merger balances these deductions will not be made. The press service stressed that the value of the requirement from July 1, will exceed the minimum with a significant margin due to held in June of recapitalization via preferred shares to 3.7 billion rubles.
“PSB was capitalized by shareholders on 30 billion last year and already at 15 billion rubles this year. Is a key asset for shareholders who are willing to support the Bank, if necessary,” — said the press service of the credit institution.
According to the Deputy Chairman of Bank Vozrozhdenie Andrey Shalimov, the Bank has a comfortable capital adequacy.
MDM Bank, whose standard is 6.8%, according to the RAEX need recapitalization in the amount of 1.7 billion rubles to the capital adequacy was at a comfortable level. The Bank declined to comment.
At VTB24 adequacy ratio core capital is 6.3%. To reduce it to critical lows, it is sufficient impairment of 0.6% of the loan portfolio, equivalent to 14 billion rubles. But the Agency stressed that VTB24 is “mother” in the form of VTB, which is always ready to help with money. As said senior Vice President of VTB24 Dmitry Orlov, the business plan for 2016 is not provided for additional capitalization from the main shareholder. However, the Bank forecasts that the excess of fixed capital, VTB24 will be the end of this year to 15 billion rubles.
Orlov also noted that the Bank may in the short term to increase the adequacy ratio core capital, including due to the “extra fallback”.
As concluded by the managing partner NAFI Pavel Samiev, the stock of capital adequacy less than 1 percentage point — this is a dangerous area, especially when you consider that some banks asset impairment is a fast process, which is formally often runs in the course of the audit. “Shareholders and Bank management must understand that any Bank would be wise to have a stock capital of more than 1 percentage point”, — said Samiev.