The NСR rating agency confirmed the rating of Bank Derzhava at BBB-.ru with stable outlook
The stable outlook means that the NCR considers it likely that the current level of the credit rating will be maintained on a 12-month horizon.
Among the most important factors determining the rating level, the experts of the rating agency note:
- significant role of the bank in the market of bank guarantees in the field of public procurement (top 5 in terms of the number of guarantees and top 20 in terms of portfolio size), which ensures profits at the level of larger credit institutions;
- high quality of the guarantee portfolio: analysis of the top 30 groups of principals, as in the previous year, shows the prevalence of companies with medium and high credit quality among them;
- maintaining a risky policy in relation to certain balance sheet assets;
- satisfactory diversification of funding complemented by a strong liquidity position;
- acceptable quality of management;
- low shareholder risks.
The current significant deterioration of the economic situation in the country and the world has a limited impact on the prospects for the development of the guarantee business of Derzhava Bank.
The Bank is a market maker of the Moscow Exchange.
Derzhava Bank ranks 93rd among Russian banks in terms of assets and 85th in terms of capital as of February 1, 2022. The ranking in terms of net profit improved from 60th in 2020 to 55th in 2021. Last year, the bank increased its guarantee portfolio by a quarter, while net profit under IFRS grew by 35%.
The bank's specialization in guarantees results in low diversification by segments. The portfolio of guarantees at the beginning of April exceeded the amount of regulatory capital by more than 10 times. At the same time, the structure of operating income is sufficiently diversified due to interest income from the loan portfolio and securities.
The bank's capital reserve significantly exceeds the regulatory minimums.
The bank demonstrates consistently high profitability indicators: at the end of 2021, ROE under IFRS was 26.5% (in 2020 - 24.9%). According to the agency Derzhava will end the year with a profit of 1.5-2 billion rubles.
In the funding structure, a significant share falls on one group of companies associated with the ultimate beneficiaries of the bank. The NCR notes the historical stability of this group's funds and adjusts the estimate for minimal balances.
Strong liquidity positions are explained by the high ratio of liquid assets to total and current liabilities: an average of 59% and 133%, respectively, for the 12 months ended March 31, 2022.
The management system of Derzhava Bank corresponds to the goals of its development and the specifics of its activities. The agency positively assesses the current business model in the guarantee issuance segment, which ensures a stable financial result in the face of an economic downturn.