Press Release

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

Karachi, June 28, 2010: JCR-VIS has reaffirmed the entity ratings of National Bank of Pakistan (NBP) at ‘AAA/A-1+’ (Triple A / A-One Plus) with a ‘Stable’ Outlook.

NBP is the largest and most well capitalized commercial bank in Pakistan with a diversified deposit base representing 16.8% of the total domestic banking sector deposits. NBP’s key strength remains its extensive outreach in the domestic market. Strong guidance provided by the Board of Directors and restructuring of the bank’s organizational setup during FY09 has resulted in improvement in level of corporate governance. The bank played an important role in stabilizing the economy during the current economic crisis by providing funds to the commodity and energy sectors and capital markets. NBP maintained adequate liquidity by increasing both institutional term deposits and lower cost saving and current deposits, with the latter forming significant proportion of the deposit base; though higher rates offered on term deposits increased the bank’s overall cost of funds.

In line with overall trends in the financial sector, NBP has also seen rising trend in delinquencies though adequate provisioning has been maintained against non-performing loans. While pressures persist in the macroeconomic environment and delinquency indicators may increase further, the bank’s strong capital base and earning capacity has allowed it to tide through the currently difficult economic times, with liquidity and capital reserves considerably high, enabling the bank to withstand any future shocks.

For further information on this rating announcement, please contact Mr. Zia Usmani (ziausmani@jcrvis.com.pk/ Ext 507) or Ms. Sabeen Saleem (sabeen@jcrvis.com.pk / Ext 510) at 35311861-70 or fax to 35311872-3.

Safdar Kazi
Director

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 2010 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .