The credit rating of JSC “GENBANK” (hereinafter, GENBANK or the Bank) is based on its limited business profile (bb), satisfactory capital adequacy assessment, adequate risk profile, and the adequate funding and liquidity position. Support from the supporting entity has a positive influence on the credit rating.
GENBANK is a universal bank that occupies a low position in terms of equity in the Russian banking sector and operates primarily in the south of Russia, including Crimea. Since 2017, the Bank has been undergoing financial rehabilitation (with the supporting entity acting as the rehabilitating bank) and has been operating in according with its financial recovery plan (FRP). The main areas of activity include financial and cash and settlement services for SMEs, as well as mortgage and consumer lending to individuals.
KEY ASSESSMENT FACTORS
The limited business profile (bb) is determined primarily by the Bank’s market positions. At the same time, the diversification of operating income (the Herfindahl-Hirschman index was 0.18 at the end of 2025) and areas of business are assessed as high, despite the significant concentration of presence in certain regions. The quality of corporate governance of GENBANK is assessed as adequate, while the macroeconomic conditions set out in the strategy are fairly conservative.
Satisfactory capital adequacy position. The Bank has partially met regulatory ratios since mid-April 2026 (including N1.1 and N1.2 at 6.8% and N1.4 at 5.2%), which according to GENBANK evidences that the execution of the FRP is slightly ahead of schedule. According to ACRA’s estimates, the current loss absorption buffer enables the Bank to withstand growth of the cost of risk in the range of 300–500 bps. In addition, the Agency notes the very high ability of GENBANK to generate capital (the averaged capital generation ratio, ACGR, calculated for the past five years exceeds 200 bps), which is possible thanks to consistent profitability and the absence of dividend payments. GENBANK’s operational efficiency corresponds to the medium level for the group of peer banks.
Adequate risk profile assessment. The quality of the Bank’s loan portfolio (54% of assets as of December 31, 2025) is assessed as high, given the low level of non-performing debt (3.8% of loans, excluding fully reserved loans issued before GENBANK was transferred to the supporting entity for rehabilitation) and concentration on the 10 largest groups of borrowers (21% of the portfolio). At the same time, the rather high share of loans provided to companies from high-risk industries — 1.4x of common equity — has a constraining effect on the assessment of the factor. However, there are no non-core assets on the balance sheet and the level of the market risk is acceptable. The quality of the portfolio of contingent liabilities is assessed as fairly high.
The adequate funding and liquidity position is based on the comfortable level of the short-term and long-term liquidity shortage indicators (taking into account the expected terms of repayment of the Bank’s liabilities to creditors/depositors). Regulatory liquidity ratios are met with a margin of safety. The concentration of the resource base on the largest source — funds of individuals (51% of liabilities) — is assessed as acceptable, concentration on the funds of the largest groups of creditors and the 10 largest groups of creditors is assessed as high (in view of obtaining funds from the state corporation Deposit Insurance Agency).
The degree of support that the supporting entity can provide if necessary is assessed by the Agency as medium, in view of, among other things, the following factors:
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The scale of operations and creditworthiness of the supporting entity significantly exceed the scale of operations and standalone creditworthiness of GENBANK, and the supporting entity has sufficient financial resources to provide prompt support to the Bank;
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The absence of legal, economic or other barriers to or restrictions on providing support due to the supporting entity and the Bank operating in the same jurisdiction;
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The supporting entity exercises material strategic and operational control over GENBANK;
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The presence of a limited associative relationship between the Bank and the supporting entity.
Taking the above into account, ACRA has added two additional notches to the Bank’s standalone creditworthiness assessment (SCA) and determined GENBANK’s credit rating at BBB(RU).
KEY ASSUMPTIONS
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The supporting entity maintaining shareholder control;
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Meeting capital adequacy requirements over the next 12 to 18 months;
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Maintaining the Bank’s current business model.
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:
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The Bank strengthening its market positions;
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Steady increase of capital adequacy ratios coupled with no deterioration of the ability to generate capital and operational efficiency;
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Significant decline of the share of loans in the loan portfolio provided to companies in high-risk sectors.
A negative rating action may be prompted by:
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Deterioration of the capital position;
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Acceptance of credit or other risks capable of negatively impacting the assessment of the Bank’s risk profile;
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Deterioration of the funding and/or liquidity position;
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Lower possibility of receiving extraordinary support.
rating components
SCA: bb+.
Support: the credit rating has been assigned two notches higher than the Bank’s SCA taking into account support from the supporting entity.
issue ratings
There are no outstanding issues.
regulatory disclosure
The credit rating has been assigned to JSC “GENBANK” 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 JSC “GENBANK” under the national scale for the Russian Federation, Methodology for Assigning Credit Ratings with External Support to determine factors of external influence, 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, rating scales, models, and key rating assumptions.
A credit rating of JSC “GENBANK” assigned under the national scale for the Russian Federation has been published for the first time.
The credit rating and its outlook are expected to be revised within one year.
The credit rating was assigned based on data provided by JSC “GENBANK”, information from publicly available sources, and ACRA’s own databases. The rating analysis was performed using the IFRS accounting (financial) statements of JSC “GENBANK” as of December 31, 2025 and the financial statements of JSC “GENBANK” drawn up in compliance with the requirements of the Bank of Russia.
The credit rating is solicited and JSC “GENBANK” 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 JSC “GENBANK” during the year preceding the rating action.
No conflicts of interest were discovered in the course of credit rating assignment.
