
Press Release
JCR-VIS Reaffirms Corporate Governance Rating of Allied Bank Limited at CGR-9
Karachi, November 28, 2014: JCR-VIS Credit Rating Company Limited has reaffirmed the corporate governance rating of Allied Bank Limited (ABL) at CGR-9, denoting ‘very high level of corporate governance’. This rating is based on a scale ranging from CGR-1 (lowest) to CGR-10 (highest). The previous rating action was announced on October 22, 2013.
Corporate governance ratings are based on evaluation of key governance areas of the rated institution, which include regulatory compliance; board oversight; management profile; self-regulation; financial transparency and relationship with stakeholders. The rating incorporates ABL’s strong regulatory compliance, financial transparency and management profile. The bank has achieved compliance with the revised Code of Corporate Governance 2012. There was stability at board level and members exhibit a rich and diverse background in banking and finance amongst other key sectors that has been instrumental in strategy execution. Steps were taken to improve board oversight by disseminating key information to board members through a monthly digest. The bank has undergone several changes at senior management positions as part of an organizational restructuring exercise lately.
ABL continued its focus on IT and centralization of systems & controls. A major milestone was achieved in 2014 that includes complete rollout of Temenos T-24 system across the branch network. Work on further strengthening the internal control framework of the bank is ongoing while implementation of Internal Control over Financial Reporting (ICFR) has been completed. The bank has also initiated training programs for industrial borrowers to improve their understanding regarding governance best practices. Financial position of the bank continues to be strong. Moreover, disclosures in the bank’s financial statements are considered comprehensive.
For further information on this rating announcement, please contact Ms. Sobia Maqbool, CFA (Ext: 510) at 021-35311861-70 (10 lines) or Mr. Maimoon Rasheed at 042-36610681-84.
Jamal Abbas Zaidi
Deputy CEO
Applicable Rating Criteria: Corporate Governance Ratings (June 2002)