ACRA affirms LOCKO-Bank's credit rating at BBB +

Analytical credit rating agency affirms BBB+(RU) rating of LOCKO-Bank, outlook Stable. The positive assessment is based on a high level of capital adequacy, satisfactory risk profile, and adequate funding and liquidity position.

Agency experts assessed the bank’s high ability to generate equity, and also noted the bank’s high capital adequacy as in IFRS (Tier-1 - 20.2% as of 31.12.2019) and regulatory standards (N1.2 - 13.4% as of 01.06.2020). At the same time, CTI (cost to income) and NIM (net interest margin), which have been indicative of the efficiency of the Bank’s activities for the last three years, stand at around 52% and 6%, respectively. The quality of the securities portfolio (24% of assets as of 01.04.2020), formed mostly by corporate bonds of issuers with a high level of creditworthiness, OFZ and OBR, is rated as high.

As noted in the agency's release, the satisfactory risk profile assessment is driven by the acceptable quality of the loan portfolio (59% of assets), the share of problem loans was 12.2% of the portfolio. Experts note a strong liquidity position due to LOCKO-Bank's ability to withstand a decrease in client funds under the baseline and stress scenario of ACRA.

The credit rating assigned to LOCKO-Bank was first published by ACRA in 2017

Timur Khamidulin, Director of the Finance Department of LOCKO-Bank:

“The confirmation of the credit rating of a reputable Russian agency at BBB + (RU) shows that the results of our activities are in line with the stated plans. LOCKO-Bank effectively implements the approved strategy, looks for new growth points and connects them with further digitalization: an increase in the number of remote services, their convenience, and a decrease in the need to visit offices. We continue to form a line of digital services, bring to the market new products that are maximally personalized and correspond to the best market trends. The bank's reliability is one of the key advantages for our clients and partners, a stable business model and professional risk management are provided by investment grade ratings from leading rating agencies ”.