Assessment of the Quality of the Loan Portfolio: the Case of a Commercial Bank

Abstract

The article discusses the loan portfolio of the commercial bank Banca Intesa JSC for the period 2019-2021. According to rating agencies, the commercial bank of Banca Intesa JSC maintained a fairly strong position in the Russian financial market in 2022, which confirms its high reliability. According to the 2022Forbes rating, Banca Intesa JSC ranked 41st among reliable Russian banks. The results of the study of the commercial bank’s activities show that the bank introduced quite effective practices over the analyzed period, and the management of Banca Intesa JSC took timely measures to stabilize its work. In many ways, economic efficiency depends on how well the loan portfolio of a commercial bank is formed. The authors analyzed the loan portfolio of Banca Intesa JSC, identified the main factors at the expense of which sources its main formation was carried out; it was also revealed for what purposes legal entities with more attractive types of economic activities were credited. Timely assessment of the state of problem debt at the early stages of its manifestation helps a bank to take the necessary measures to minimize credit risks in time. The analysis of the problem debt of Banca Intesa JSC showed that the dynamics of this indicator decreases every year, which has a favorable effect on the financial condition of the bank’s activities.