Press Release
VIS reaffirms Positive Outlook to Entity Ratings of Dubai Islamic Bank Pakistan Limited
Karachi, June 30, 2026: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the entity ratings of ‘AA/A1+’ (Double A/A One Plus) assigned to Dubai Islamic Bank Pakistan Limited (‘DIBPL’ or the ‘Bank’). Long-term rating of ‘AA’ denotes high credit quality; protection factors are strong. Risk is modest but may vary slightly from time to time because of economic conditions. Short-term rating of ‘A1+’ indicates strongest likelihood of timely repayment of short-term obligations with outstanding liquidity factors. Outlook on the assigned ratings has remained ‘Positive’. The instrument ratings assigned to the Bank’s Tier 2 Sukuk and Additional Tier 1 (ADT-1) Sukuk have been reaffirmed at ‘AA-’ (Double A Minus) and ‘A+’ (Single A Plus), respectively. The previous entity and instrument rating actions were announced on June 30, 2025.
DIBPL was incorporated in Pakistan on May 27, 2005 as an unlisted public limited company and commenced operations as a Scheduled Islamic Commercial Bank on March 28, 2006 after obtaining the requisite regulatory approvals from the State Bank of Pakistan (SBP). The Bank is principally engaged in corporate, commercial, consumer, investment and retail banking activities in accordance with Shariah principles. DIBPL is a wholly-owned subsidiary of Dubai Islamic Bank PJSC, UAE, with the Bank's shares held by the parent entity and its nominee directors. DIBPL continued to execute its expansion strategy effectively, expanding its branch network to 310 branches as of Dec'25 from 235 branches a year earlier, with the addition of 75 new outlets during the year.
Ratings of DIBPL reflect the Bank's strong institutional support as a wholly owned subsidiary of Dubai Islamic Bank PJSC, UAE, a leading Islamic banking franchise with strong financial standing, robust governance standards, and established risk management practices. The ratings also incorporate DIBPL's improving market position with execution of its branch expansion strategy, sound capitalization and satisfactory liquidity profile. The assigned Positive Outlook on ratings reflects the expectation that the Bank's recent investment in branch expansion will translate into stronger current account mobilization and a more favorable funding mix, supporting margin recovery and sustainable earnings over the medium term. The improving trend in asset quality, supported by continued recoveries and prudent portfolio monitoring, further underpins the Outlook. Going forward, the Bank's ability to sustain growth in low-cost deposits, maintain sound asset quality amid higher financing deployment, improve operating efficiency as the expanded network matures, and strengthen recurring profitability will remain key rating considerations.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Financial Institutions
https://docs.vis.com.pk/Methodologies-2026/FI-Methodology-26.pdf
Instrument Rating
https://docs.vis.com.pk/Methodologies-2025/IRM-Apr-25.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf