Press Release

VIS Reaffirms Entity Ratings of First Credit and Investment Bank Limited

Karachi, December 30, 2022: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of First Credit and Investment Bank Limited (FCIBL) at ‘A/A-2’ (Single A/A-Two). Medium to long term rating of ‘A’ signifies good credit quality with adequate protection factors. Risk factors may vary with possible changes in the economy. Short-term rating of ‘A-2’ signifies good certainty of timely payment. Liquidity factors and company fundamentals are sound. Access to capital markets is good. Risk factors are small. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on December 31, 2021.

FCIBL is a Non-Banking Finance Company (NBFC) with non-deposit taking status and its primary operations include the provision of funded and non-funded based facilities and advisory services. The assigned ratings are underpinned by the strong sponsorship profile of the bank with two government-owned entities, namely, National Bank of Pakistan (NBP) and Water and Power Development Authority (WAPDA), having majority shareholding. The bank has witnessed an overall decrease in its loan portfolio on a timeline basis owing mainly to the management’s cautious approach in disbursement and competitiveness in quality lending market. In absolute terms, the bank has been able to maintain its asset quality with no incidence of fresh infection. However, the decreasing trend in loan portfolio resulted in marginally higher gross infection ratio. The management focus would remain on short-term investments, particularly T-bills, in its investment strategy while enhancing arbitrage opportunities in money market operations.

The bank recorded an operating loss in the outgoing year owing to lower returns from advances and non-markup income though bottom line was supported by reversals in diminution of investments. Liquidity position remains strong owing to healthy investment portfolio and lower liabilities. However, gearing levels increased due to significant short-term repo borrowings mobilized for spread transactions along with slightly lower equity base. Going forward, the ratings will depend on the bank’s ability to enhance profitability and maintain gearing within acceptable limits.

For further information on this rating announcement, please contact Mr. Basel Ali Assad (Ext: 8003) or the undersigned (Ext: 306) at 021- 35311861-66 or email at

Sara Ahmed

VIS Entity Rating Criteria: Non-Bank Financial Companies (March 2020)

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 2022 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .