Press Release

JCR-VIS Assigns Positive Outlook to Entity Ratings of Meezan Bank Limited

Karachi, June 22, 2009: JCR-VIS Credit Rating Co Ltd. (JCR-VIS) has maintained entity ratings of Meezan Bank Limited (MBL) at ‘A+/A-1’ (Single A Plus /A-One).

Outlook on the medium to long-term rating has been revised from ‘Stable’ to ‘Positive’ in view of favorable trends witnessed in the bank’s performance. As pioneers of Islamic Banking, MBL has capitalized on the first-mover advantage and built a strong franchise amongst the masses, evident in the highest market share in terms of deposits in the Islamic Banking Sector. The expansion in branch network to 166 branches has been instrumental in facilitating the growth in retail deposits. During 2008, the proportion of Current and Saving Accounts has enhanced further, in addition to which a more granular mix has also emerged gradually. Management plans on consciously maintaining these trends over time.

Low-cost deposit mix enhanced core earnings in FY08, though overall profitability indicators came under stress on account of losses from capital market operations. Till now, gross infection in the bank’s portfolio is low. Most of the delinquencies have emanated in the corporate portfolio and the quality of consumer lending has so far fared better than most market players.

A challenging operating environment will continue to test the resilience of market participants. Continuing to focus on key elements of risk and drawing on experience, MBL’s management expects to achieve growth in line with projected targets. The impact of developments in the external environment on the bank’s growth plans will be monitored by JCR-VIS.


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

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 .