Fitch Ratings has upgraded LOCKO-Bank's Long-Term Issuer Default Ratings (IDRs) to 'BB-' from 'B+'. The Outlook is Stable.
According to the agency’s analysts, the upgrade of LOCKO-Bank's ratings reflects the bank's extended track record of shifting the business mix towards lending to mass affluent retail customers from concentrated and sometimes opportunistic corporate lending, while maintaining reasonable asset quality and performance, comfortable capitalisation and ample liquidity.
Fitch Ratings also assigned «BB» rating to banks: Credit Europe Bank, Home Credit, SDM Bank, Tinkoff Bank, Gazprombank and OTP.
Alexey Parfenenok, Financial Director of LOCKO-Bank:
“The revision of the rating to «BB-» reflects the opinion of the rating agency on improving asset quality, and also reflects the financial soundness of the bank. The opinion is based on a stable credit profile with a sufficient level of capitalization, high profitability and a comfortable liquidity position. LOCKO-Bank 's margin increased to 6.6% in 2018 from 6.1% in 2017, despite the market downward trend. LOCKO-Bank continues to be consistently profitable on a long-term horizon with a constant increase in the share of commission income in revenue. LOCKO-Bank 's net fee and commission income has tripled in absolute terms over the past four years. Improving of the credit rating of a reputable international agency is an objective confirmation of the compliance of the results of our activities with the approved strategy.”