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Piraeus Bank received confirmation of a long-term credit rating on a national scale at the level of uaAA
23 June 2021

The decision of the rating committee of the Rating Agency "Standard-Rating" updated the long-term credit rating of Piraeus Bank on a national scale at the level of uaAA. This indicates that a bank or a separate debt instrument with a corresponding rating is characterized by a very high creditworthiness compared to other Ukrainian borrowers or debt instruments. The decision to update the credit rating was made based on: the analysis of the bank's performance for 2020; on the basis of statistical reporting of the bank for 2020 and for January-March 2021.


1. Key balance sheet indicators of Piraeus Bank (for the period from 01.01.2020 to 01.01.2021) showed upward dynamics:

  • assets grew to 37,00% and amounted to UAH 4.091 billion.;

  • volume of loans and advances to customers increase was 1.53 times up to UAH 2.114 billion.;

  • cash and cash equivalents increased by 5.86% and amounted to UAH 672.517 million;

  • investments in securities showed an increase on 25,51% to 963,393 UAH million;

  • liabilities increased by 46.44% and amounted to UAH 3.438 billion;

  • equity grew by 2.26% up to UAH 652.834 million.


In 2020, the bank showed a significant increase in key components of the resource base. So, as of 01.01.2021 compared to 01.01.2020 banks' funds in Piraeus Bank's liabilities increased by 31.99% (up to UAH 334.283 million), volume funds of individuals grew nand 18.23% (to UAH 1.263 billion), and funds of legal entities increased by 33.54% (to UAH 1.232 million). Also in 2020, the bank attracted from the NBU long-term loans denominated in hryvnia, totaling UAH 350 million, obtained by refinancing with repayment in 2025. Funds raised from the NBU will be used to lend to customers. in addition, according to the results of 2020, there was an increase in other borrowed funds as a result of the Bank's receipt at the end of 2020 of a long-term loan from the EBRD under the SME support program totaling UAH 141 million and maturing in 2022.


During 2020, the following changes took place in the structure of the bank's liabilities: the share of bank funds decreased by 0.31 percentage points. (from 8.48% to 8.17%), the share of funds of individuals decreased by 4.90 percentage points. (from 35.76% to 30.86%), and the share of funds of legal entities decreased by 0.78 percentage points. (from 30.91% to 30.13%), while the share of NBU funds increased from 0% to 8.56%, and the share of other borrowed funds increased from 0.02% to 3.45%.


Asset structure Piraeus Bank (as of 01.01.2021 compared to 01.01.2020) has undergone the following changes:

  • share of loans and advances to customers increased by 5.49 percentage points: c 46,19% to 51,68%;

  • the share of cash and cash equivalents decreased by 4.83 percentage points: 21.27% to 16.44%;

  • the share of investments in securities decreased by 2.15 percentage points: 25.70% to 23.55%.


With, as of 01.01.2021 securities portfolio Piraeus Bank It was 100% formed from government bonds of Ukraine and NBU certificates of deposit, ie from the highest quality assets, which are characterized by a low level of risk.


Thus, in 2020, Piraeus Bank demonstrated the growing dynamics of key balance sheet indicators. The agency pays attention to the growth of the loan portfolio (+53.28%) and the growth of key components of the bank's resource base, which in the context of declining business activity in the country caused by the COVID-19 pandemic, is positively assessed by the Agency.


The Agency also reminds once again that the bank's business strategy is focused on expanding lending to small and medium-sized enterprises (SMEs), which, among other things, is facilitated by the Bank's cooperation with the EBRD. Also at the end of 2020, the bank joined the state program to provide state guarantees for loans to SMEs for up to 5 years, totaling up to UAH 150 million, under which the state guarantee provides up to 50% of debt obligations on the loan portfolio and up to 70 % for each individual loan. At the same time, in 2020 the bank started cooperation with the Business Cooperation Fund and joined the state program to support small business in Ukraine "Affordable Loans 5-7-9", which provides financial assistance by reducing loans through state interest rate compensation, which will depend on the amount of annual income from business activities and the number of jobs created.


The regulatory capital of the Bank (H1) for the period from 01.01.2020 to 01.01.2021 decreased by 0.77% and as of the beginning of 2021 amounted to 620,495 million, which is more than three times exceeded the limit set by the NBU for this standard (at the level of UAH 200 million). The regulatory capital adequacy ratio of Piraeus Bank (H2) as of 01.01.2021 compared to 01.01.2020 decreased by 13.18 percentage points and amounted to24.54%, which is 2.45 times exceeded the limit set by the NBU, and was also 2.56 percentage points above the average value of this standard for the banking system of Ukraine. Fixed capital adequacy ratio bank (H3) during 2020 decreased at 11.42 percentage points up to 24.10%, which was 3.44 times higher than the limit set by the regulator, as well as 8.43 percentage points exceeded the market average.


In addition, the Agency draws attention to the fact that as of 01.04.2021 H1 of Piraeus Bank amounted to UAH 610.306 million, H2 of the bank amounted to 24.52 %%, and H3 increased to 24.28%. Thus, as of early April 2021Piraeus Bank was very well supplied with capital (regulatory and core), which has a positive effect on its credit rating.


Table 2

Basic standards of JSC "PIRAEUS BANK ICB", UAH thousand, %


Normative value




by system, UAH million,%

bank, thousand UAH,%

by system, UAH million,%

bank, thousand UAH,%


Regulatory capital (H1)

> 200 million

182 283.6

620 495

150 313.8

625 298


Regulatory capital adequacy ratio (H2)

> 10%






Fixed capital adequacy ratio (H3)

> 7%






Short-term liquidity ratio (H6)

> 60%






Liquidity coverage ratio ratio for all currencies (LCRvv)

> 100%






Foreign currency liquidity coverage ratio (LCRs)

> 100%






Maximum credit risk ratio per counterparty (H7)