The B(RU) credit rating of UBRD, PJSC (hereinafter, UBRD or the Bank) is based on the Bank’s low standalone creditworthiness assessment (SCA), which reflects the moderate assessment of the business profile, very low assessments of capital adequacy and the risk profile, and the satisfactory assessment of funding and liquidity. The rating also takes into account support an unidentified group (the Bank’s shareholders) can provide to the Bank if necessary.
The change in the outlook for the Bank’s credit rating from Stable to Positive is based on ACRA’s opinion regarding the likely improvement of the risk profile assessment due to a reduction in the share of problem debt in the loan portfolio and expectations of a sustainable improvement of its quality.
UBRD is a credit institution operating primarily in the Ural Federal District (hereinafter, the UFD). UBRD is a universal bank that provides a wide range of services to both individuals and corporates. According to ACRA’s estimates, UBRD is among the 35 largest Russian banks in terms of assets and the 20 largest banks in terms of liabilities to individuals. In 2025, the Bank completed the financial rehabilitation and acquisition of “VUZ Bank” JSC (hereinafter, VUZ Bank).
Key assessment factors
The moderate business profile score (bb+) primarily reflects the limited score for the franchise, which is determined by the declining market position of the Bank in terms of the volume of available capital. Relatively high diversification by source of operating income has a positive impact on the business profile assessment, which is due to the comparable shares of income from the corporate and retail loan portfolios, a high share of interest income from securities in the overall revenue structure, and a declining share of fee income. ACRA also notes the increased geographical concentration of the Bank’s business (in terms of both lending operations and resource base). Currently, the Bank is at an early stage of implementation of its strategy for 2026–2028, which includes business stabilization, improvement of the quality and structure of the loan portfolio, increase in profitability and financial results, and transformation of the Bank’s digital infrastructure. The strategy implementation assessment takes into account a retrospective analysis of achievement of predetermined targets.
The very low assessment of capital adequacy is explained primarily by the Bank’s moderate capital adequacy ratios and the negative value of the average capital generation ratio (ACGR) for the five-year period starting from 2020. As of March 1, 2026, the N1.2 ratio was 9.18%. In 2025, shareholders continued to provide the Bank with significant amounts of additional capital to support its capitalization, including as part of the acquisition of VUZ Bank whose capital was negative.
In 2025, the Bank recorded a loss caused primarily by low operating efficiency due to the still limited level of NIM amid increased but shrinking operating expenses.
In the Agency’s opinion, although the Bank’s capacity to generate revenues has improved, the ability to expand the business and absorb credit risk may still depend on the shareholders’ willingness to provide additional capital.
The risk profile is assessed by the Agency as very low. As of September 30, 2025, the share of non-performing and potentially non-performing loans in the Bank’s portfolio was still high and exceeded that of peer banks. At the same time, the Bank writes off fully reserved, uncollectible, overdue loan debt, which is reflected in a reduction in the volume and share of non-performing loans according to UBRD’s IFRS reporting data. The total volume of the loan portfolio fell by almost 26% over 9M 2025 mainly due to a declining volume of corporate loans. The portfolio’s concentration on the largest groups has shrunk considerably due to, among other things, a decline in the amount due from the largest corporate borrowers. The loan-to-value ratio is assessed as moderate. ACRA also notes that the volume and share of real estate investments on the Bank’s balance sheet has decreased.
ACRA assesses the Bank’s position in funding and liquidity as satisfactory. The Agency bases its liquidity assessment on the calculated short-term and long-term liquidity shortage indicators and has determined it as satisfactory. The Bank’s liquidity ratios are still fairly high (as of March 1, 2026, the instant liquidity ratio (N2) was 150% and the current liquidity ratio (N3) was 174.4%), but ACRA notes a certain imbalance of assets and liabilities with maturities up to 90 days. The diversification of funding and the concentration on the largest lenders are assessed as satisfactory.
The credit rating also reflects the high likelihood of support to the Bank from key beneficiaries and/or companies owned by them. In accordance with the Methodology for Assigning Credit Ratings with External Support, ACRA has added one notch to the Bank’s SCA.
Key assumptions
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The shareholding control structure remaining unchanged;
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The Bank maintaining its positions in the financial services market of Russia generally and the UFD, in particular.
Potential outlook or rating change factors
The Positive outlook assumes that the rating will highly likely be upgraded within the 12-month horizon.
A positive rating action may be prompted by:
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Significant reduction in the volume of non-performing debt and maintaining its share in the total loan portfolio at a moderate level without a deterioration of loan portfolio diversification;
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Consistent growth of capital adequacy ratios;
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Higher operational efficiency and capital generation capacity;
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Better balance of assets and liabilities in the short term.
A negative rating action may be prompted by:
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Loss of competitive positions in the financial services market of Russia generally and the UFD, in particular;
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Lower diversification of the operating income;
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Higher funding structure concentration;
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Worse liquidity position.
Rating components
SCA: b-.
Support: SCA plus one notch.
Issue ratings
There are no outstanding issues.
Regulatory disclosure
The credit rating has been assigned to UBRD, 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 UBRD, PJSC under the national scale for the Russian Federation, Methodology for Assigning Credit Ratings with External Support to assess 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.
The credit rating assigned to UBRD, PJSC under the national scale for the Russian Federation was published by ACRA for the first time on May 30, 2022.
The credit rating was last published on April 30, 2025.
The credit rating and its outlook are expected to be revised within one year.
The credit rating was assigned based on the data provided by UBRD, PJSC, information from publicly available sources, as well as ACRA’s own databases. The rating analysis was performed using the IFRS accounting (financial) statements of UBRD, PJSC as of September 30, 2025 and the financial statements of UBRD, PJSC drawn up in compliance with the Bank of Russia’s requirements.
The credit rating is solicited and UBRD, 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.
The decision to affirm UBRD, PJSC’s credit rating at B(RU) and change the outlook from Stable to Positive was made at a follow-up meeting of the rating committee, taking into account ACRA’s review of the appeal against the primary rating committee’s decision to affirm UBRD, PJSC’s credit rating at B(RU), with a Stable outlook. Taking into account the additional information submitted as part of the appeal regarding changes in loan portfolio quality parameters, a decision was made to change the outlook for UBRD, PJSC’s credit rating from Stable to Positive. The B(RU) credit rating remains unchanged following the review of the appeal.
ACRA provided no additional services to UBRD, PJSC during the year preceding the rating action.
No conflicts of interest were identified in the course of credit rating assignment.
