Privatbank's profitability will remain strong and further improve over the next year, supported by strong fee and commission income, along with increased net interest income. That is reported in the updated Credit Opinion on PrivatBank published by the international rating agency Moody’s. As noted in the opinion, for H1 2019, PrivatBank reported a record net profit of UAH18.3 billion and will likely sustain the improving trend until year-end.
Moody’s analysts expect Privatbank's liquidity position to remain strong over the next year with the bank’s liquid assets accounting for around 70% of the total assets. Moody’s believes, that any potential deposit outflows will be manageable for PrivatBank, because its liquidity buffer fully covers all retail deposits and corporate demand deposits. PrivatBank is currently in compliance with the liquidity requirements for SIFIs (effective from 2020) and reported liquidity ratios significantly above the minimum.
The bank's regulatory total capital adequacy ratio stood at a high 15.9% as of 1 June 2019. Being designated as a systemically important financial institution (SIFI), PrivatBank will meet the new capital requirements because of its currently high regulatory capital buffer and strong internal capital generation.