Press Release

JCR-VIS assigns ‘A’ (Single A) rating to Dubai Islamic Bank Pakistan Ltd.

Karachi, June 21, 2007: JCR-VIS Credit Rating Company Limited has assigned a medium to long term entity rating of ‘A’ (Single A) with a ‘Stable’ outlook to Dubai Islamic Bank Pakistan Ltd. (DIBP). The short-term rating has been assessed at ‘A-2’ (A-Two). Long-term ratings signify good credit quality with adequate protection factors.

DIBP is a wholly owned subsidiary of Dubai Islamic Bank, Dubai, which is one of the largest banks in UAE and is partly owned by the government of Dubai. The parent entity had a consolidated balance sheet footing of US $17.5b as of December 31, 2006 and a total shareholders’ equity of US $2.4b. Dubai Islamic Bank, Pakistan had a paid-up capital of Rs. 3.92b as of December 31, 2006, which is proposed to be increased to Rs. 6b by the end of FY08. Listing of the institution is also expected to take place in the next calendar year. Implied parent support has been incorporated in the rating assessment.

With adequate systems deployed to monitor risks, DIBP’s business strategy positions the bank as a diversified institution, offering products for both corporate and consumer segments. Future income streams are likely to benefit more from non-fund based business and a high margin, consumer portfolio that has already begun to develop. On account of the high initial infrastructure cost incurred to deploy necessary resources and team to launch a full array of products, the bank is currently incurring losses. However as the portfolio is being developed; earning streams are expected to take the bank into profits by FY08. Profitability trends will be monitored by JCR-VIS on an ongoing basis.

DIBP is currently operating through 12 branches and the network will expand over the coming years. Deposit mobilization may pose a challenge, as the pace of deposit growth in the banking sector has slowed down and competition from small and medium sized banks has also escalated. Islamic Banking is gradually establishing its foothold in Pakistan and the number of Islamic Financial Institutions is on a steady rise. DIBP may derive some benefit from its franchise value within the specific target market niche.

For further information on this rating announcement, please contact the undersigned or Ms. Sabeen Saleem at 5311861-70 or fax to 5311873.


Safdar Kazi
Advisor

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 June 21, 2007 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.