The Bank of the ROC in response to the statement, Fitch published positive results of its activities for 9 months of 2016
Bank “Peresvet”, belonging to the Russian Orthodox Church (49,71%) and Trading-industrial chamber of the Russian Federation (of 24, 36%), one week after the disturbing statements by the international rating Agency Fitch Ratings published the preliminary results of its activities for the first nine months of 2016.
The Bank increased its net profit to 2.13 billion vs. 1.8 billion a year earlier. Capital increased by 13.9% to 30.3 billion rubles. Net assets increased by 8.2% to 200,3 billion. The volume of customer funds amounted to 99.9 billion rubles, 77.4 billion of which are funds of corporate customers, with 22.4 billion rubles of individuals ‘ funds. the Bank’s Credit portfolio among corporate customers in the reporting period rose to 140,8 billion. The portfolio is dominated by enterprises with state participation and companies, a significant proportion of the business which have contracts with the different regions or Federal agencies.
Judging by the fresh report of the Bank, the share of overdue debt in its portfolio as of October 1 amounted to only 0.55 percent. For comparison, the average level of overdue debt in the banking system exceeds 4%, reports the Agency “Prime”.
Positive statistics followed after rating Agency Fitch announced on the issuance of credits by the Bank “Peresvet” between affiliated companies. The Agency’s experts admitted that it may indirectly indicate lower than reported, as assets. However, this did not prevent the Agency Fitch confirm the rating of “overexposure” at the level “B+” with a stable Outlook.
The same credit rating at “b+” with a stable Outlook, affirmed the “closest distance” and the rating Agency S&P. As stated by analyst S&P Global Ratings Roman Rybalkin, “the Bank historically large group of loyal clients, with whom we established long-term credit relationship. For this group of clients accounts for about half of its loan portfolio. In addition, the credit organization effectively manages the arrears and, if it occurs quickly prefer to implement security to minimize losses.”
According to experts, in the past two years, the share of overdue debt in loan portfolio of the Bank has never significantly exceeded 1%.
The Bank’s rating is supported by the Bank’s capital adequacy ratio, which is N1 ratio of 13.85% at the minimum of 8%. This extra capital will allow credit institutions to continue to grow ahead of the sector, attracting additional funds from shareholders.
In the Bank “Peresvet” argue that Fitch used in its Analytics legacy data the financial statements of the borrowers.
“They have used very old data, including in 2011-2012, and current information on the financial position of these borrowers have not asked, – said Vice-President of the “Peresvet” Nadezhda Gromova. – In addition, Fitch made a mistake in the wording. In international practice there is a strong notion of real assets, indicating hard real asset having a physical expression of enterprise investment in fixed assets, land, fuel, materials, property for sale, inventory and so on. The substitution of the language and was created a distorted view of some of our borrowers, which has unnecessarily damaged the reputation of both the Bank and its customers.”
According to her, without exception, all borrowers, loans which Fitch has ranked as high risk, have fixed assets, inventory, materials, finished products, real estate and other real assets, whose fair value exceeds their carrying amortized valuation.