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Friday, June 23rd, 2017

Pakistan Credit Rating Agency Limited assigns Positive Outlook to long term rating of JS Bank Limited

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by June 23, 2016 General

Lahore, June 23, 2016 (PPI-OT):The Pakistan Credit Rating Agency Limited (PACRA) has assigned ‘Positive Outlook’ to the long-term entity rating of ‘A+’ (A plus) of JS Bank, while maintaining short term rating of ‘A1+’ (A one plus). The ratings denote a low expectation of credit risk and indicate strong capacity for timely payment of financial commitments.

The ratings reflect steady fortification in JS Bank’s business profile. The bank continues to strengthen its market position that has enabled it to be ahead of most peers. While focusing on deposit growth through expanding branch network, the bank continues to build its advances book, thus augmenting its earning profile. Net interest income showed healthy rise as earning assets increased. Meanwhile, sizeable other operating income, an outcome of strong treasury operations, provided support to profitability.

The management intends to remain cautious – reflective in stated strategy of balancing advances growth and liquidity. It is following a wholesome business strategy with prudent expansion targets through wide slate of liability and asset products. At the same time, it would continue to expand its operational scale. This is likely to add diversity and sustainability to the bank’s overall profile. Meanwhile, the management continues to focus on, (i) adding diversity in deposits as well as advances, (ii) maintaining asset quality given growth inclination, and (iii) strengthening capitalization.

The ‘positive outlook’ on ratings capture the bank’s strengthening market share. The bank aspires to sustain its overall growth momentum to enhance its competitiveness in challenging banking industry. Consequent penetration – high share in system’s loans and deposits – besides ensuring sustainability in revenues would be ratings positive.

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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