30.06.2020

Rating agency ACRA (JSC) has confirmed Bank Saint Petersburg PJSC’s credit rating of A (RU), outlook Stable

Rating agency ACRA (JSC) has confirmed Bank Saint Petersburg PJSC’s credit rating of A (RU), outlook Stable. Rating confirmation reflects ACRA’s analysts expectations for the Bank to maintain leading positions in North-Western region’s banking sector.

High esteem of Bank’s operation is supported by the stable market positions in Russian banking sector as a whole, as well as in Saint Petersburg and Leningrad Oblast specifically. The Bank will continue strengthening its positions in Russian Federation by applying its vast regional expertise as well as firm relationships with partners and governmental bodies.

Apart from that, analysts point out the reduction of risk appetite amid the unfavorable economic situation as a positive factor. Namely, the Bank has decided to temporarily suspend payments of dividends and share buyback programs and has also revised its lending growth target downward to 8% in 2020, i.e. practically cut it in half. These measures support the Bank’s loss absorption capacity. The comfortable capital adequacy position is based on the current relatively comfortable level of capitalization and the Bank’s proven ability to generate relatively predictable income.

In addition to a recognizable brand and strong market positions, the stability of the Bank’s business is largely due to its relatively high level of diversification of operations in terms of individual counterparties compared to other Russian banks, analysts believe.

The Bank is one of the twenty largest credit organizations in the Russian Federation and is among the most significant regional banks. The Bank focuses on St. Petersburg, the Leningrad Region, and Moscow. Its key business lines are corporate and retail lending, foreign exchange operations and interbank deals, servicing legal entities, and securities transactions.

The press release is available on the Agency website: https://www.acra-ratings.com/press-releases/1915

Tags: IR News