Expert RA

Expert RA has assigned the A rating to Tatfondbank

July 28, 2008

The Expert RA rating agency has assigned the A rating (high creditworthiness) to Tatfondbank.

Acceptable level of capital adequacy, high quality of corporate governance and good credit history determine the Bank high creditworthiness. Proper procedures of credit risk management keep outstanding debts at a low level: by April 1, 2008 it was 0.7% of the credit portfolio. Developed net of branches and additional offices in Tatarstan as well as involvement with state programs placed the Bank among the three largest regional crediting groups.

Highly concentrated credit risks and absence of information about the Bank end beneficiaries tone the rating level down. According to IAS, the Bank improved its performance in 2007, but asset and capital profitability are still below the average market level. “The Bank is poorly represented outside Tatarstan (about 85% of the Bank borrowers are in the region), is a bit behind its competitors in the retail segment, but 2008-10 plans provide for advanced retail growth, also due to regional expansion”, – said Stanislav Volkov, Expert RA, department of ratings of financial institutions.

The Bank develops corporate, retail and investment activities and actively participates in federal and regional SME and agriculture crediting programs, provides asset management and factoring services. The Bank assets by April 1, 2008 (RAS) amounted to 42.7 bln rubles, own funds (capital) – 7.0 bln rubles, profit before tax went up to 81.4 mln rubles.