Press Release
VIS Reaffirms Entity Ratings of Pak Brunei Investment Company Limited
Karachi, June 27, 2025: VIS Credit Rating Company Limited (VIS) has reaffirmed entity ratings of Pak Brunei Investment Company Limited (‘PBICL’ or the ‘DFI’) at 'AA+/A1+' (Double A Plus/A One Plus). Medium to long term rating of 'AA+' indicates 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 remains ‘Stable.’ Previous rating action was announced on June 28, 2024.
PBICL was incorporated in 2006, as an unlisted public limited company under the repealed Companies Ordinance, 1984 (now Companies Act, 2017), with business operations commencing on August 20, 2007, following approval from the State Bank of Pakistan (SBP). It is a joint venture between the Government of Pakistan (GoP) and the Brunei Investment Agency (BIA), established with the objective of promoting industrial and agro-based industrial development in Pakistan through commercial investments, project financing, and sectoral support. The DFI offers a comprehensive suite of financial services including corporate and project finance, SME finance, private equity, lease finance, structured finance, capital market operations, asset management, Islamic finance, and advisory services, among others.
Ratings assigned to PBICL reflect its strong ownership structure. As a joint venture between the GoP and the BIA, PBICL benefits from strategic direction and implicit support from its sovereign stakeholders. The DFI’s governance framework aligns with regulatory expectations, supported by a qualified board and management team. Continued emphasis on environmental, social, and governance (ESG) practices, including efforts towards a Shariah-compliant operational model, further reflects PBICL’s forward-looking approach.
PBICL’s asset quality indicators remain adequate, with non-performing loans at manageable levels and a strong provisioning buffer. The loan portfolio is diversified across key sectors, and recent enhancements in risk management have further strengthened the institution’s credit risk governance. Improvements in the internal risk framework, including the restructuring of the risk function and the appointment of dedicated leadership for credit and enterprise risk, have enhanced oversight.
Profit before Tax (PBT) remained stable during the year despite narrowing spreads, owing to a reversal of Expected Credit Loss (ECL) allowance on advances following recovery efforts, vis-à-vis a provisioning charge in the prior year; however, a rebound in earnings was observed in the first quarter of 2025. Although this uptick may not be sustained in the long term, profitability for the ongoing year is expected to remain stable at prior-year levels. As per the management, the DFI is currently reviewing its asset mix with a focus on a sustainable income stream.
Liquidity metrics remain satisfactory, underpinned by a high share of sovereign investments and reliable access to market-based funding. Moreover, the DFI maintains a strong capital base, with a capital adequacy ratio significantly above the regulatory minimum, providing a substantial buffer against potential credit losses. Going forward, the ratings will remain sensitive to sustained asset quality, earnings resilience, and progress on strategic initiatives, including the transition toward Islamic banking.
For further information on this rating announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Government Supported Entities
https://docs.vis.com.pk/docs/Meth-GSEs202007.pdf
Financial Institution
https://docs.vis.com.pk/Methodologies%202024/Financial-Institution-v2.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf