Press Release

JCR-VIS reaffirms ratings of National Bank of Pakistan Limited at AAA /A-1+

Karachi, June 30, 2009: JCR-VIS has reaffirmed the credit ratings of National Bank of Pakistan (NBP) at AAA/A-1+ (Triple A / A-One Plus) with a ‘Stable’ outlook.

NBP’s key strength remains its extensive outreach in the domestic and international markets, as well as its broad based, cost effective deposit base. Further strength is also derived from deposits being guaranteed by the Government of Pakistan.

With the lowest cost of funds in the market during 2008, NBP’s net finance margins remained amongst the highest in the sector, and core earnings rose considerably. However, marked increase in non-performance, which affected the entire banking sector, resulted in an increase in loan charge offs. Additionally, general inflationary pressures also increased administrative expenses reducing profits vis-à-vis 2007 results. While pressures persist in the macroeconomic environment and non-performance may increase further, the bank’s strong capital base has allowed it to tide through the currently difficult economic times, with the capital adequacy ratio still considerably higher than minimum requirements and capable of withstanding future shocks.

The rating committee has also favorably considered recent efforts made with the objective of improving internal controls and strengthening of the bank’s internal audit function.

For further information on this rating announcement, please contact Mr. Safdar Kazi (safdar@jcrvis.com.pk/ Ext 501) or Ms. Sabeen Saleem (sabeen@jcrvis.com.pk / Ext 510) at 5311861-70 or fax to 5311872-3.



Faheem Ahmad
President & CEO

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 2009 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .