The Pakistan Credit Rating Agency (PACRA), responsible to evaluate the capacity and willingness of an entity to honor its obligations, has upgraded the long-term entity rating of JS Bank Limited (JSBL) to “A+” (Single A Plus) from “A”, while maintaining the short-term entity rating at “A1″ (A One).
These ratings denote a low expectation of credit risk while the capacity for timely payment of financial commitments is considered strong.
“The ratings reflect the bank’s sound financial profile emanating from improving profitability, strong liquidity and supporting capital adequacy. The bank’s strengthening franchise owing to its expanding branch network, supported by a sound technological platform is a key consideration. The bank is expanding its asset base, which is currently being managed comfortably”, said the press release issued by PACRA.
With transfer of relatively established asset management and brokerage businesses to bank – as subsidiaries – by its parent, JS Bank now possess significant potential to synergize and capitalize on in these domains. The ratings draw comfort from association with the JS Group.
Although the report issued by PACRA also suggest that as the size of the bank grows, a careful monitoring of related risks would require management’s active attention. Similarly, building a quality loan book and effective deployment of funds via careful selection criteria would be critical.
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