Fitch Ratings has affirmed Russia-based URALSIB Bank's (UB) and its subsidiary Uralsib Leasing Group's (ULG) Long-term Issuer Default Rating (IDR) at 'B+'. The Rating Outlook is Negative, the rating agency informed.
The affirmation of ratings with a Negative Outlook reflects Fitch's view that the credit profile remains under downward pressure from extremely weak capitalisation, slow progress with reduction of large non-core assets and related-party exposures, poor operating performance, and a moderate liquidity position.
Positively the ratings are supported by the bank's granular corporate loan book of generally decent quality, adequately performing retail lending and a solid retail deposit collection capability.
OJSC Bank Uralsib (tax number: 0274062111) established in 1993 is among thirty major banks of the Russian Federation. Before December 2001, the bank was called Republican Investment and Credit Bank Bashcreditbank. In September 2006, it merged with Avtobank-NIKoil, investment and banking group NIKoil, Bryanskiy Narodny Bank and Kuzbassugolbank. Bank Uralsib is the basic asset of the Financial corporation Uralsib, its authorized capital is RUB 29.258 billion.
RAS net profit of Bank Uralsib for 2013 dropped 1.8-fold to RUB 1.2 billion. Pre-tax profit decreased twice to RUB 1.409 billion from RUB 2.901 billion.
Net profit of Bank Uralsib for Q1 2014 grew 2.4 times to RUB 500 million from RUB 210.5 million in Q1 2013