Fitch points to smaller volume of delinquent loans in loan portfolio of Ukrgasbank compared to other state banks (formerly the Ministry of Finance reported that Ukrgasbank has ten times less non-performing loans than other state banks, – ed.).
Agency experts call the quality of the largest loans, issued by Ukrgasbank, acceptable, and also draw attention to the growth of loans for renewable energy and the portfolio of government securities, which at the end of the first quarter amounted to 23% of assets (significantly less compared to other state banks, - ed.).
In the estimation of the agency, Ukgasbank has a high level of coverage of problem loans, capitalization is moderate against the background of a moderate growth of the loan portfolio. Return of capital for 2018 is 14% (Ukrgasbank’s profit for 2018 is UAH 769 million, for the first half of 2019 – UAH 276 million, - ed.).
Fitch considers that the dependence of Ukrgasbank on foreign financing is low. At the same time, it notes that this state bank is striving to develop relations with the sources of “green” financing. At the same time, one of the depositors, “old and stable” provides 12% of the deposit portfolio (Ukrgasbank was one of the leaders in deposit growth for 5 months of 2019, - ed.).
According to the agency, the liquidity of Ukrgasbank is acceptable (especially in the national currency), given the stock of readily obtainable assets at the level of 16% of liabilities at the end of the first quarter of 2019.