Press Release
JCR-VIS Reaffirms Ratings of Meezan Bank Limited at A+/A-1
Karachi, June 30, 2008: JCR-VIS Credit Rating Co Ltd. (JCR-VIS) has reaffirmed the medium to long-term entity rating of Meezan Bank Limited (MBL) at ‘A+’ (Single A Plus) with a ‘Stable’ outlook. Short term rating has also been reaffirmed at ‘A-1’ (A One).
MBL enjoys strong franchise in the Islamic banking segment. While entry of new market participants has raised the level of competition, there exists significant room for further growth on account of the growing share of Islamic banking. MBL has leveraged itself to take advantage of this growth potential through continued expansion in outreach. The quality of the new liability book being developed features improvement in terms of increased level of dispersion. Fresh equity injection planned for the on-going year is expected to improve capitalization levels.
The loan portfolio includes corporate, SME and consumer exposures, with strong portfolio quality maintained across all business segments, allowing the bank to generate healthy returns thereon. The increasing trend in overheads may continue on account of the planned expansion, as booking of assets and growth in revenues generally comes with a lag effect. The impact of developments in the external environment on the bank’s growth plans will be keenly monitored by JCR-VIS.
The bank has initiated the task of preparing itself for the implementation of core banking solution, Temenos T-24 and the complete roll out is expected over the next two years.
For further information on this rating announcement, please contact Mr. Safdar Kazi (Ext: 501) or Ms. Sabeen Saleem (Ext: 510) at 5311861-70 (10 Lines) or fax to 5311872-73.
Faheem Ahmad
President & CEO
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