Expert RA

Expert RA has affirmed the creditworthiness rating of Volga Social Bank

September 11, 2008

The Expert RA rating agency has affirmed the B+ rating (sufficient creditworthiness) of Commercial Volga Social Bank (Samara).

The Bank boasts good credit portfolio, new business development, acceptable diversification of attracting and placing funds, acceptable concentration (10 largest creditors and borrowers), and reliable reputation at the regional market. In 2007-2008 the Bank was expanding its activity in Samara area thus increasing its share at the regional market. “Credit programs with Delta-Credit (mortgage) and Inter-municipal fund for supporting small entrepreneurship in Samara area were definite pluses. Working with partners allows the Bank to diversify its business and expand its presence at the financial market”, - says Oksana Kaplina, Expert RA, department of ratings of financial institutions.

The Bank’s creditworthiness is partly limited by insufficient capital adequacy, attraction-placement time gap, absence of special risk-management department, borderline mid and long-term liquidity level. The Bank’s dynamic growth and corresponding expenses made assets less profitable, but efficient functioning of new offices may change the picture for the better. Still, the Bank needs to map its strategy in relation to targets and corresponding terms.

VSB plans to increase own capital, develop wholesale and retail areas with special attention to SME. The Bank intends to extend its network of payment terminals and acquiring services to secure broader range of services.

Commercial Volga Social Bank is a universal bank, servicing SME in Samara area. By July 1, 2007 the Bank assets by RAS amounted to 1 762.6 mln rubles, own capital – 187.3 mln rubles, profit before tax – 22.3 mln rubles.