Standard & Poor's updates rating of Azerbaijani Kapital Bank

By Trend

Standard & Poor's Global Ratings agency has determined the outlook on Azerbaijani Kapital Bank's rating as ‘stable’ and affirmed it at the level of ‘BB-/B', Trend reports citing the bank.

The Kapital bank has the highest rating among the banks of the country, said the report.

According to the agency’s experts, thanks to sufficient liquidity reserves, an adequate level of capitalization and a stable deposit portfolio, compared to comparable domestic and foreign banks, Kapital Bank will be able to more effectively withstand potential stress factors in the coming year, caused by the global economic recession due to the COVID-19 pandemic and falling oil prices.

Moreover, the combined assessment of capitalization and risk position of Kapital Bank is also high, added the experts.

In the bank's loan and deposit portfolio for 2020-2021, an annual increase of 10-15 percent is expected, which is about 5-10 percent higher than forecasts, said the report.

In the period of slowdown in global economic growth, the Kapital Bank's will mainly be focused on digitalization and improvement of the quality of customer service, the report added.

Kapital Bank, having the biggest branch network in Azerbaijan, is at the service of customers with 101 branches and 15 departments.

The bank is in the TOP-3 of the largest banks in Azerbaijan. The bank's shareholders are PASHA Holding (99.87 percent) and individuals (0.13 percent).