Pakistan Credit Rating Agency maintains the Entity Ratings of First Women Bank Limited; Outlook is Positive


Lahore: The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short-term entity ratings of First Women Bank Limited (FWBL) at ‘BBB+’ (Triple B Plus) and ‘A2′ (A Two), respectively. These ratings denote a low expectation of credit risk emanating from an adequate capacity for timely payment of financial commitments The ratings reflect the bank’s relatively constrained profile mainly due to limited outreach, weak franchise, and lack of strategic direction at the level of existing shareholders and the board (mainly dominated by big-5 banks).

Although the profitability is adequate, asset quality has emerged as a concern lately. Nevertheless, FWBL’s capital adequacy and liquidity remain strong, though its nominal capital is well short of the statutory requirement. The ratings continue to carry a positive outlook as the government plans to keep the bank in public sector by significantly increasing its stake in the bank (above 50%), in which regard material progress has been achieved lately. Timely execution of the acquisition process would be critical for the bank’s prospects as currently it lacks a clear business strategy.

For more information, contact:
Hammad Rashid
Analyst
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
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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