Pakistan Credit Rating Agency maintain Ratings of Albaraka Bank Pakistan Limited

Lahore, June 22, 2012 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short-term entity ratings of AlBaraka Bank (Pakistan) Limited (ABPL) at “A” (Single A) and “A1″ (A One) respectively. These ratings denote a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.

The ratings reflect ABPL’s association with a strong Middle Eastern banking group – AlBaraka Banking Group. The ratings incorporate the bank’s progress in overcoming its constraints including relatively limited branch network, high cost structure, lower spreads, and subdued profitability. Post merger, the bank focused towards integrating the operating platform to achieve operational efficiency.

Meanwhile, the management’s continuous vigilant efforts to arrest infection in its loan book helped easing out pressure on overall performance. The bank is focusing on low-cost deposit mobilization with cautious advances deployment to improve its financial profile.

The ratings are dependent on the bank’s ability to successfully execute its business strategy, while improving its bottom-line performance. The efficacy of the risk management framework aimed at improving the overall asset quality of the bank remains important. Meanwhile, achieving regulatory capitalization requirements – both MCR and CAR – is critical.

For more information, contact:
Hammad Rashid
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425

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