The credit rating of Center-invest Bank (hereinafter, Center-invest or the Bank) is based on an adequate business profile, strong capital adequacy, and adequate assessments of risk profile and funding and liquidity.
The Positive outlook reflects an upgrade of the Bank’s risk profile assessment expected by the Agency on the back of a sustainably low level of non-performing and potential non-performing loans.
Center-invest is an organically expanding regional bank that is among the 100 largest banks in Russia. It operates mainly in the Southern Federal District. Key business areas include providing consumer lending, mainly mortgage loans, and lending to SMEs, mostly agribusinesses. Center-invest has been active in promoting ESG principles in its key region of presence, and was among the first banks in Russia to start developing ESG banking.
KEY ASSESSMENT FACTORS
The adequate business profile (bbb) reflects the stable position held by Center-invest in its key region of presence, both in lending and in attracting client funds. The strategy appears well balanced and takes into account current trends in the Russian banking system; the quality of the Bank’s corporate governance is assessed as high.
The Bank’s strong capital position stems from its loss absorption cushion, which is kept within the accepted balance and off-balance sheet risks as per both national regulatory standards (N1.2 was 11.45% as of April 1, 2025) and Basel standards, which allows Center-invest to sustain an increase in the cost of credit risk of up to 500 bps without the need for any external financial support. At the same time, the Bank’s ability to generate capital is assessed as adequate (the averaged capital generation ratio, ACGR, exceeded 100 bps for the past five years). The Bank’s operating efficiency indicators are at the same level as last year and correspond to the market averages.
The adequate risk profile assessment is determined by an adequate risk management system, as well as the acceptable quality of the loan portfolio, which accounts for most of the Bank’s assets. The share of non-performing and potential non-performing loans in the loan portfolio has declined over the past 12 months. The portfolio’s concentration on the 10 largest groups of borrowers, high-risk industries, and related parties is still insignificant, as well as the share of non-core assets on the Bank’s balance sheet.
Due to a strictly conservative approach, a significant portion of Center-invest’s temporarily free liquidity is deposited with the Bank of Russia. The Bank does not deal in securities, and the share of assets and liabilities denominated in foreign currencies is extremely low.
The adequate funding and liquidity position is based on a surplus of short-term liquidity in ACRA’s base case scenario and a shortage of short-term liquidity in its stress scenario when assessing the short-term liquidity shortage indicator, as well as a strong long-term liquidity shortage indicator. As of April 1, 2025, the regulatory liquidity ratios were met with a large margin (N2 was 289.73%, N3 was 295.89%, and N4 was 73.24%).
The pronounced dependence of Center-invest’s resource base on funds of individuals is somewhat offset by a low concentration on the 10 largest groups of lenders.
key assumptions
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Adhering to the current business model within the 12 to 18-month horizon;
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Tier 1 capital adequacy ratio exceeding 12% within the 12 to 18-month horizon.
potential outlook or rating change factors
The Positive outlook assumes that the rating will highly likely be upgraded within the 12 to 18-month horizon.
A positive rating action may be prompted by:
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Sustainably low share of non-performing loans in the loan portfolio;
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Significant decrease in resource base concentration on the largest source of funding.
A negative rating action may be prompted by:
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Decrease of capital adequacy indicators/ratios prompted by growth in the cost of risk or dividend payments;
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Increase in the share of non-performing loans in the loan portfolio and/or growth in the volume of non-core assets held by the Bank;
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Deterioration of the liquidity position;
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Changes to the ownership structure.
rating components
Standalone creditworthiness assessment (SCA): а.
Adjustments: none.
Support: none.
ISSUE RATINGS
No outstanding issues have been rated.
REGULATORY DISCLOSURE
The credit rating has been assigned to Center-invest Bank under the national scale for the Russian Federation based on the Methodology for Assigning Credit Ratings to Banks and Bank Groups under the National Scale for the Russian Federation and the Key Concepts Used by the Analytical Credit Rating Agency Within the Scope of Its Rating Activities.
The credit rating of Center-invest Bank was published by ACRA for the first time on July 26, 2018. The credit rating and its outlook are expected to be revised within one year following the publication date of this press release.
The credit rating was assigned based on data provided by Center-invest Bank, information from publicly available sources, and ACRA’s own databases. The rating analysis was performed using the consolidated IFRS financial statements of Center-invest Bank and the financial statements of Center-invest Bank drawn up in compliance with the requirements of the Bank of Russia. The credit rating is solicited and Center-invest Bank participated in its assignment.
In assigning the credit rating, ACRA used only information, the quality and reliability of which were, in ACRA’s opinion, appropriate and sufficient to apply the methodologies.
ACRA provided additional services to Center-invest Bank. No conflicts of interest were discovered in the course of credit rating assignment.
