Expert RA rating agency publicly announced about the assignment of ruBB+ credit rating to TRANSKAPITALBANK (TKB) with /Stable/ outlook.
Expert RA underlined TKB’s adequate positions in the small and medium enterprise (SME) financing market and the mortgage lending market (ranked TOP-12 and TOP-18 respectively), as well as its well-diversified revenue base (HHI for incomes - 0.22). TKB’s capital position was assessed as satisfactory given the significant (more than 50 %) capital increase in 2020 following the issue of new shares and the conversion of subordinated Eurobonds into perpetual debentures.
Consequently, the bank’s net worth (capital) ratio (N1.0) went up to 16.7% from 13.8%, and its core capital ratio (N1.2) rose to 15.3% from 11.1% in 2020.
Expert RA recognized a substantial improvement of the operating efficiency of the Bank, including CTI decrease from 57% to 44% for the recent 2 years and markedly declined non-core assets volume on TKB’s books.
The analysts also mentioned the Bank’s low concentration of large credit risk exposures relative to net assets.
The rating agency positively assessed the TKB Group’s 2025 growth strategy, which main focus is enhancing the operating performance and increasing the proportion of earning assets.