Press Release

JCR-VIS Upgrades Corporate Governance Rating of Allied Bank Limited

Karachi, November 09, 2016: JCR-VIS Credit Rating Company Limited (JCR-VIS) has upgraded the corporate governance rating of Allied Bank Limited (ABL) from “CGR-9” to “CGR-9+”. This rating is based on a scale ranging from CGR-1 (lowest) to CGR-10 (highest). The previous rating action was announced on December 04, 2015.

The ratings assigned to ABL reflects very high level of corporate governance practices instituted in the bank underpinned by sound internal control environment, financial transparency and regulatory compliance. The bank implemented corporate governance framework which outlines institutions policy on Board composition and structure, its roles and responsibilities and meetings and decisions of the Board. Orientation and director development, compensation of directors and confidentiality matters have also been incorporated in the framework. The Board comprises seasoned professionals with diverse background and experience.

Over the years, internal control environment at ABL has been strengthened with procedures and systems effectively implemented and monitored in all major control functions including internal audit, compliance and risk management. A team of experienced and professional personnel is in place to administer control functions. ABL has an approved succession plan in place, assisting the bank in timely and smooth transitions. Human Resource Group is involved in continuous development of the workforce. Employee turnover indicates general satisfaction of employees at various cadres.

ABL adheres to its core business line and considers shareholders’ wealth creation as primary objective. Quality of communications with the shareholders is considered to be on equal footing with industry practices and no limitation in communication between the management and shareholders was observed. ABL aptly disseminates various information useful for its stakeholders through reports and updated website enabling them to formulate a general opinion regarding risk faced by the bank.

For further information on this rating announcement, please contact the undersigned at 021-35311861-70 (Ext: 234) or Mr. Waqas Munir, FRM at 042-35723411-13 (Ext: 8010).


Javed Callea
Advisor

Applicable Rating Criteria: Corporate Governance Rating (June 2002)
http://www.jcrvis.com.pk/home2.aspx

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright November 09, 2016 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.