The credit rating of SDM-Bank PJSC (hereinafter, SDM-Bank, or the Bank) is based on the satisfactory business profile assessment, strong capital adequacy assessment, and the adequate assessments of the risk profile and the funding and liquidity position.
The outlook has been changed to Developing to reflect the potential downgrade of the credit rating if the proportion of non-performing and potentially non-performing assets in the Bank’s loan portfolio remains unchanged or increases over the 12–18-month horizon, or the potential affirmation of the credit rating if the trend toward a better quality of the Bank’s loan portfolio develops.
SDM-Bank is a medium-sized credit institution that is among top 100 Russian banks in terms of capital. The Bank’s priority business lines include SME lending, investments in securities, and retail deposits.
KEY ASSESSMENT FACTORS
Satisfactory business profile assessment (bbb-). ACRA notes the Bank’s consistently transparent ownership structure and the quality of corporate governance that matches the Bank’s scope and strategy. The Bank’s development plans include upholding and expanding its traditional lines of business with a focus on SME lending. Noting a high share of low-risk assets held on the Bank’s balance sheet, ACRA views the development strategy as conservative, regardless a comparably fast growth of the portfolio in certain periods. The Bank maintains the high diversification of its operational income based on a significant share of interest income from securities, fee income and forex earnings in total revenues. The business profile assessment is still constrained by the Bank’s relatively low market share.
The strong capital position is supported by capital adequacy ratios that are higher than the market averages. The value of N20.2 was 13.45% as of January 1, 2026, while the N1.2 ratio was 12.652% as of March 1, 2026. Historically, the Bank’s marginality has been fairly high even on the backdrop of various external challenges, which ensures its sustainable ability to generate capital (the averaged capital generation ratio (ACGR) exceeded 150 bps for 2021–2025). ACRA notes that the Bank’s net interest margin (NIM) was higher than the industry average at the end of 2025 and, according to ACRA’s estimates, it is around 5.5% for 2023–2025. The current capital adequacy metrics and the sustainable ability to generate capital underpin the Bank’s ability to withstand a significant increase in credit exposures.
ACRA maintains the adequate assessment of the Bank’s risk profile, although noting a deterioration in the loan portfolio quality during 2025. According to the IFRS financial statements as of September 30, 2025, the share of Stage 3 assets was 4.5%. At the same time, the Agency notes an increase in the volume and share of assets restructured by the Bank. It is worth noting that but for the restructure, such loans would have been overdue or impaired. The total share of restructured and Stage 3 assets reached 8%. ACRA also underscores that the growing share of non-performing and potentially non-performing loans is partly explained by a shrink of the total loan portfolio in 2025. Moreover, at the end of last year and the beginning of this year, ACRA observed a decrease in the volume of Stage 3 assets, which, in the Agency’s opinion, jointly with the planned growth of the loan portfolio, will contribute to an overall improvement in the portfolio quality.
At the same time, ACRA notes that the Bank remains committed to a conservative policy in shaping the assets section of the balance sheet. By the end of 2025, the share of the loan portfolio was less than 25% of the total assets. This fact, combined with the previously existing steady trend for improving the loan portfolio quality, makes it possible to assess the quality of the Bank’s risk management function as adequate. In addition, the loan portfolio concentration remains moderate since the share of the ten largest groups of borrowers is less than 30% of the loan portfolio. At the same time, the Bank takes a conservative approach to selecting potential borrowers, which reduces the risks of portfolio deterioration in the current environment. The low share of the loan portfolio in the total assets of the Bank also results in a limited impact of deterioration in its quality on the Bank’s creditworthiness.
Most of the Bank’s assets are still formed by the securities portfolio, which is dominated by sovereign bonds of the Russian Federation (about 50% of the portfolio) and corporate debt instruments of high credit quality. In addition, SDM-Bank maintains investments in securities of foreign issuers, the payments for which are complicated by cross-border restrictions. However, this fact does not influence the risk profile assessment, taking into account the Bank’s ability to offset potential losses without significant impact on key performance indicators. A significant amount of securities held by SDM-Bank is associated with an increased market risk, which constrains the risk profile assessment. The Bank also holds non-core assets that bring it additional income.
Adequate funding and liquidity position. As of January 1, 2026, the Bank was able to withstand a significant outflow of client funds in both the base case and stress scenarios of ACRA, which was associated with the high volume of cash and unencumbered securities on the balance sheet. The Agency notes no imbalances over longer periods.
ACRA notes a significant increase in the funds of corporates and individuals in 2025. On the one hand, the share of retail funding in the total volume of liabilities grew (up to 66% in 9M 2025), on the other hand, the concentration of the resource base on the largest depositors tended to decline. ACRA expects that the share of retail customer funds in the Bank’s liabilities will remain relatively high over the next 12–18 months, however, the cumulative impact of this sub-factor on the funding and liquidity assessment will remain neutral.
KEY ASSUMPTIONS
-
Maintaining the current business model in the next 12–18 months.
-
N1.2 ratio above 12% in the next 12–18 months.
POTENTIAL OUTLOOK OR RATING CHANGE FACTORS
The Developing outlook assumes a variety of trends: the rating may stay unchanged or downgraded within the 12 to 18-month horizon.
A positive rating action may be prompted by:
- The loan portfolio quality continuing to recover.
A negative rating action may be prompted by:
-
The loan portfolio quality resuming to deteriorate;
-
Growing share of the top 10 groups of associated borrowers in the loan portfolio;
-
Tier 1 capital adequacy ratio declining below 12% and a weaker profit-generating and a lower loss-absorbing ability of the Bank;
-
Growth of investments in non-core assets over the next 12 months;
-
Deteriorating liquidity position.
rating components
Standalone creditworthiness assessment (SCA): a-.
Issue ratings
There are no outstanding issues.
Regulatory disclosure
The credit rating has been assigned to SDM-Bank PJSC 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 SDM-Bank PJSC under the national scale for the Russian Federation; 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, rating scales, models, and key rating assumptions.
The credit rating of SDM-Bank PJSC assigned under the national scale for the Russian Federation was published by ACRA for the first time on June 19, 2017.
The most recent publication date of the credit rating is May 6, 2025.
The credit rating and its outlook are expected to be revised within one year.
The credit rating is based on data provided by SDM-Bank PJSC, information from publicly available sources, and ACRA’s own databases. The rating analysis was performed using the IFRS financial statements of SDM-Bank PJSC as of September 30, 2025 and the financial statements of SDM-Bank PJSC drawn up in compliance with the Bank of Russia’s requirements.
The credit rating is solicited and SDM-Bank PJSC 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 SDM-Bank PJSC during the year preceding the rating action.
No conflicts of interest were discovered in the course of credit rating assignment.
