Rating of Kapitalbank reflects high level of solvency and low credit risk in its activities. Ability of the bank to implement its financial liabilities in time and fully considered as high compared to other banks with lower ratings. But, changes in commercial, financial and economic conditions can impact abilities of the bank to fulfill their financial liabilities more compared to the bank with higher rating.

The agency said that the business scale of Kapitalbank grew in moderate tempo. The assets of the bank rose by 12.02% year-on-year in the first quarter of 2011 to 366.3 billion (327 billion soums in 1Q 2010). It is worth to mention that moderate growth of the assets impacted decrease of the loan portfolio compared to the first quarter of 2010. The loan portfolio of Kapitalbank decreased by 12.9% year-on-year and made up 133.1 billion soums (152.8 billion soums in 1Q 2010).

At the same time, the agency positively rated the growth of investment portfolio in the first quarter of 2011. In order to implement presidential decree “On realization of bankrupt companies to commercial banks”, Kapitalbank invested over 9 billion soums to rehabilitation of the enterprises in 2009-2010. In the result, the investment portfolio grew twice in the first quarter of 2010 to 5.96% of total assets (3.3% in 1Q 2010).

Loan portfolio quality is rated at acceptable. In the reporting period, about 94.7% of loans are rated as good. At the same time, share of large loans made up 25.37% of loan portfolio. In the first quarter of 2010, the reserve of the bank for loan loss made up 1.67 billion soums (1.24 billion soums in 1Q 2010).

Kapitalbank’s liquid position was rated as in adequate level. In the first three months of 2011, the liquid assets grew by 18.63% and their share reached to 26.96% of the assets.

At the same time, the ratio of loan portfolio to deposits and attracted resources at the money market decreased from 74.71% in the first quarter of 2010 to 53.93% in the same period of 2011. This shows that the bank has great opportunity to further increase the volume of “working assets”. Simultaneously, the bank liquidity made up 51.4% in the first quarter of 2011 (42.3% in 1Q 2010).

Main source of the bank’s funding is clientele accounts and its share made u 67.68% in the first quarter of 2011. At the same time, all deposits of clients made up 89.43% in attracted resources of the bank. Other part of funding, including funds for payment to other banks, grew 2.2 times and subordinated Debt Instruments rose over three times. Overall, borrowed funds of Kapitalbank rated as short-term, taking into account that 94.41% of liabilities of the bank are with term of less than a year. It is worth to note that term resource base of the bank rose 43.42% year-on-year. Taking into account this, the ratio of loan portfolio of the bank to term resource base made up 117.54% and Ahbor-Reyting belives that this figure will remain in favourable level.

The bank carries out active management with capital adequacy level to protect from possible risks. At the same time, the aggregate capital of Kapitalbank rose 2.3% year-on-year in the first quarter of 2011.

Simultaneously, the charter capital of Kapitalbank rose by 10.9% year-on-year to 25.5 billion soums. At the same time, the capital adequacy level made up 10.94% (11.98% in the first quarter of 2010).

It is necessary to note that despite decrease of risky assets, the capital adequacy of the bank changed significantly. In the first quarter of 2011, the coefficient of general capital and the first level capital adequacy made up 13% and 14.9% respectively (12.3% and 15.7% in 1Q 2010).