S&P affirms Gazprombank

S&P said it affirmed its long- and short-term issuer credit ratings on Gazprombank JSC and its core subsidiaries, Gazprombank (Switzerland) Ltd. and Bank GPB International SA, at BB+/B.

The outlook is stable.

The agency said the affirmation is based on a belief that Gazprombank will be able to manage the effects of the still challenging economic conditions over the outlook horizon.

“The bank's profitability has recovered in the past couple of years following the significant drop in cost of risk, which supports its internal capital generation,” S&P said in a news release.

“However, we expect a slight decline in its interest margin, in line with the sector trend and because of increased competition, after it reached about 3% in 2017 underpinned by a reduction in funding costs.”

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