"Investbank" JSC with increased credit rating again
“Investbank” JSC’s long-term credit rating was raised by one notch- from B+ to BB-. This happened because of the agency for credit rating (BAKR)’s decision from the end of November and the prospect of financial institution was changed from “stable” to “positive”. This is another improvement in credit rating within a year (in 2021 y. the rating was raised two times).
“Investbank” JSC reported improvement in financial performance, maintaining capital adequacy within optimal limits and improvement in bank’s liquidity. Something more- for the period of the annual review, the Bank’s capital base shows a positive upwards trend. Regardless of the stagnation noted at the end of 2021 y., for the first half of 2022 y. significant growth of 7,2% was reported.
As a result of high net profit for 2021 y., as well as the interim financial result in the middle of 2022y., recorded against the background of the weaker increase in equity for the last period, the return on equity shows a string improvement and an upward trend- 5,7% at the end of the 2021 y. and 11,1 % in the middle of 2022 y. With this the lag of last three years has been stopped in comparison with the average values for the banking system (8,9% for 2021 y. and 10,8% in the middle of 2022y.) the report further states.
The monitoring also shows that in 2021 y., the volume of resources attracted by “Investbank” JSC recorded a significant growth of 17,2% for the second year in a row (14,3% for 2020 y.).
Corporate and institutional deposits continue to grow very strongly in the first half of 2022 y. (by 19,7% in just the six months of the year).
The amount of assets of “Investbank” JSC maintains its very high annual growth- with almost the same amount- 15,6% at the end of 2021y. after that of 15,9% for the previous 2020y. (preceded by the only annual decline for the considered period in 2019 y. from 10,5 %).
The bank’s loan portfolio reported a growth of2 2,6% at the end of 2021y.
The credit rating agency’s report shows a significant improvement in quality of loans, by reducing the level of non-performing loans, which are at relatively high level for the system, with a low degree of coverage with revaluations. For 2021y. the improvement is even more significant than the previous year, with the amount of impaired exposures shrinking dramatically by 41,2 % year-on-year with an equally, significant drop in the share of these loans in the gross loan portfolio to 11,7 %. BAKR’ s conclusion is that the improvements of these basic indicators for the equality of loans is due to a much greater extent to the indicated decrease in the absolute amount of non-performing loans than to the growth of gross loans.
From the beginning of 2022y. “Investbank” JSC permanently maintains the amount of its balance sheet above BGN 2,5 billion, which at the end of third quarter reached BGN 2,89 billion. This is the highest reported so far, and the good result mainly due to an increase in loan portfolio. The bank’s gross loan portfolio from the beginning of 2022y. reached BGN 1.06 billion at the end of September. This is historically also the highest amount of the portfolio reached at the end of the reporting date.
The attached resource also maintains a permanent retention trend of over BGN 2,2 billion since the beginning of the year, and as of September 30, 2022y., it reached a record BGN 2,6 billion. The excellent result is due to the attraction of new customers and retention of current costumers in the bank.
Over the past two years, and in line with its long-term strategy, the bank has offered new competitive online products as well as made a number of improvements to its digital services. This year “Investbank” JSC provided its customers with a credit card with favorable terms and completely remote application, approval and issuance. The Project was awarded first place in the "Innovative Services" category at the annual business awards of b2b Media. A debit card with included health insurance from ZK “Bulgaria Insurance” is also [art of the new online products, along with the mobile token and the possibility to open a deposit fully online .
The newest digital service of “Investbank” JSC comes on the eve of 2023y. and places credit institution among the pioneers on the path to open banking, which will greatly facilitate customers and allow the institution to learn more about its customers and, accordingly, provide them a variety of services related to their individual needs. The bank is among the first financial institutions in Bulgaria to offer the Multibanking service. At the moment, the platform is in the post-integration stage and works in a real environment for employees and selected customers. Very soon will be start of this service for all customers.