S&P turns Alfa-Bank view to positive

S&P said it revised its outlook on Alfa-Bank to positive from stable and affirmed its BB+ long-term issuer credit ratings.

The agency also changed the outlook on the bank's parent company, ABH Financial Ltd., to positive from stable, and affirmed its BB- rating.

“Alfa-Bank continues to show high profitability and adequate capitalization. In 2020, the bank's ROA reached 2.2%, with a cost-to-income ratio of 38%, which compares favorably with those of the bank's Russian and international peers. Due to its well-established market positions and advanced digitalization, the bank also increased its number of corporate and retail clients, and raised its fee and commission income by 19% in 2020 (in U.S. dollar terms). The bank's net fees and commissions now almost fully cover operating expenses,” S&P said in a press release.

The agency said it expects the bank will moderately expand its business in 2021-2022 while broadly maintaining its risk-adjusted capital ratio, which was at 8.24%.

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