The credit rating of “NK Bank” (hereinafter, NK Bank or the Bank) has been upgraded in view of the improvement of the capital adequacy assessment to strong amid the continued limited business profile assessment, critical risk profile assessment, and adequate funding and liquidity position.
The outlook has been changed from Positive to Stable to reflect the implementation of the Agency’s expected changes to assessments, as well as ACRA’s opinion regarding the Bank’s rating being maintained at the current level over the 12–18 month horizon.
key assessment factors
The limited business profile assessment (bb) primarily reflects the Bank’s relatively low share in the Russian market. NK Bank offers services to corporate and retail clients. The Bank’s main business lines are corporate lending and private banking services. NK Bank is among Russia’s second hundred largest banks in terms of equity and assets. The Agency notes a certain decrease in the Bank’s business diversification amid growth of the share of income from interbank lending (which currently dominates) in the structure of operating income. The specified income item is followed in terms of volume by interest income from loans to legal entities, commission income, as well as income from loans to individuals.
NK Bank’s strategy envisages maintaining positions in the corporate segment and servicing high net worth individuals.
The capital adequacy assessment has been increased to strong due to the improvement of the Bank’s ability to generate capital (better averaged capital generation ratio (ACGR)). As of November 1, 2025, the Bank’s Tier 1 capital adequacy ratio (N1.2) was 35.51%, which allows the Bank to withstand an increase in the cost of risk above 500 bps without violating this standard, even if it is forced to significantly increase loan portfolio reserves. The Agency notes the stable decline of the cost-to-income ratio, which evidences an improvement of the Bank’s operational efficiency.
Critical risk profile assessment. The share of non-performing and potential non-performing loans in the Bank’s loan portfolio remains high. Besides this, the loan portfolio concentration is still high. As of September 30, 2025, the quality of most assets outside the loan portfolio was high. Market and operational risks are low compared to the Bank’s equity.
Adequate funding and liquidity assessment. As of September 30, 2025, the Bank maintained strong assessments of short-term and long-term liquidity. The increased concentration of funding on the funds of the largest group and the 10 largest groups of depositors remains a constraining factor for the overall funding and liquidity assessment. The share of the largest group of depositors is 20% of total liabilities, while the share of the 10 largest groups is 72%. At the same time, the diversification by funding source remains acceptable.
key assumptions
-
Maintaining the current strategy and business model over the next 12–18 months;
-
Maintaining the capital adequacy ratio (N1.2) at no lower than 12% over the next 12–18 months;
-
Positive net profits in 2025–2026.
Potential outlook or rating change factors
The Stable outlook assumes that the rating will highly likely stay unchanged within the 12 to 18-month horizon.
A positive rating action may be prompted by:
-
Lower share of non-performing and potential non-performing loans;
-
Significantly lower concentration of the loan portfolio.
A negative rating action may be prompted by:
-
N1.2 declining below 12%;
-
Stable decline of business diversification;
-
Significant growth of the share of retail clients in the funding structure coupled with a continued heightened concentration on the largest group and/or 10 largest groups of depositors.
Rating components
Standalone creditworthiness assessment (SCA): bb.
Adjustments: none.
Support: none.
Issue ratings
There are no outstanding issues.
regulatory disclosure
The credit rating has been assigned to “NK Bank” based on the following methodologies: the Methodology for Assigning Credit Ratings to Banks and Bank Groups under the National Scale for the Russian Federation to calculate the SCA and determine the credit rating and the credit rating outlook of “NK Bank” 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 to ensure consistent and uniform application of ACRA’s methodologies, models, and key rating assumptions.
The credit rating of “NK Bank” assigned under the national scale for the Russian Federation was published by ACRA for the first time on January 22, 2021.
The credit rating and its outlook are expected to be revised within one year.
The credit rating was assigned based on data provided by “NK Bank”, information from publicly available sources, and ACRA’s own databases. The rating analysis was performed using the IFRS accounting (financial) statements of “NK Bank” as of June 30, 2025 and the financial statements of “NK Bank” drawn up in compliance with the requirements of the Bank of Russia.
The credit rating is solicited and “NK 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 no additional services to “NK Bank” during the year preceding the rating action.
No conflicts of interest were discovered in the course of credit rating assignment.
