Moody’s upgrades Ipoteka-bank’s outlook on long-term deposit ratings from “stable” to “positive”

On the 8th of July 2021 Moody’s international rating agency announced Ipoteka-bank’s long-term foreign and local-currency deposit ratings. According to the report, Ipoteka-bank’s rating was maintained at “B1/B1”, whilst the outlook was raised from “Stable” to “Positive”.

According to Moody’s analysis, improvement in business diversification, high support by the government, limited dependence on market funding and modest liquidity, and strong loss absorption, supported by capital buffers and recurring earnings generation contributed the bank to achieve the current level.

The agency’s analysts specify that Ipoteka-bank’s asset risk will remain low with the problem loan ratio staying below 5%. Moreover, the agency’s analysts believe that the profitability of the bank will strength over the next 12-18 months as a result of recovery in the business activities, an increase in the volume of fees and commissions, as well as reduction in loan loss provision.

The rating agency concluded that the bank has good access to alternative funding sources, since customer accounts and deposits represent the bank’s second-largest funding source (32% of the bank’s total non-equity funding as of 31 December 2020) reflecting the stability of key wholesale funding components.

Ipoteka-bank remains focused on increasing its product and delivering high quality services to customers in all business segments. The main objective of the bank is to improve customer satisfaction and encourage long-lasting relationships to increase profitability.

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