During 9M2016 net interest income increased by 34% y/y. The bank's assets increased by 11% since the beginning of the year, liquid assets increased by 54% and attracted deposits increased by 20%. We believe that the ATFBank has significant liquidity reserve to meet its obligations in the medium term and a low probability of receiving extraordinary support from the government. Considering the high profitability of US dollar-denominated perpetual subordinated obligations (6 month Libor + 7.33%) in comparison with alternative releases of other banks and investing opportunities in bank deposits (rate of return in dollars up to 2%), our recommendation to  BUY  Eurobonds of ATF Bank is unchanged.

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