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PACRA Maintains Entity and TFC Ratings of Standard Chartered Bank (Pakistan) Limited

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by December 29, 2017 General

Lahore, December 29, 2017 (PPI-OT):The ratings reflect SCBPL’s association with a financially sound and reputed international bank – Standard Chartered PLC. This is supplemented by SCBPL’s strategic and operational integration into the parent as the bank continues to benefit from the technical resources and cumulative expertise developed at the group level. The risk profile of the parent institution has improved since last update, as the quantum of impairment has subsided and has rebounded into slight profitability in 2016.

Further improvement is essential. The ratings incorporate the bank’s dominant position in its target niche market (MNCs, established domestic Corporates and affluent retail clients) through a comprehensive product suite and significant digital capabilities complemented by its international franchise and its extensive presence in tier-I cities. The bank is increasing its focus on deployment of advances leading to enhanced interest income. The ratings factor in sound management quality, healthy spreads, efficient operating structure and ample liquidity of the bank. SCBPL’s pre-dominantly low cost deposit base enabled the bank to achieve one of the best CASA mix in the industry, while distinguishing it in its peer universe it also facilitates core operating activities.

The ratings remain dependent on the bank’s ability to maintain its presence in profitable segments, while remaining abreast of changing domestic operating environment. Meanwhile, maintaining spreads whilst not compromising on the asset quality is important for the bank.

For more information, contact:
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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