Press Release

JCR-VIS Upgrades Entity Ratings of Samba Bank Limited to AA-/A-1 with Stable Outlook

Karachi, June 29, 2012: JCR-VIS Credit Rating Company Ltd has upgraded the entity ratings of Samba Bank Limited (SBL) from ‘A+/A-1’ (Single A Plus/A-One) to ‘AA-/A-1’ (Double A Minus/A-One). Outlook on the assigned ratings is ‘Stable’.

The assigned ratings take into account the strong financial profile of Samba Financial Group (SFG), a financial institution incorporated in the Kingdom of Saudi Arabia, which has a stake of 80.7% in SBL. SFG has sound capitalization with CAR of 19.2% at end-Dec’11 and balance sheet footing of $51b. Given the shared franchise and resources available with the parent entity, ongoing support is expected to continue and the bank is likely to be able to meet future minimum regulatory requirement in time.

On a standalone basis, SBL has posted profit on an annual basis in 2011 for the first time since its acquisition by SFG. Liquidity profile of the institution is considered sound, deriving support from the high capitalization level. Depositor base needs to be diversified further. The bank has nevertheless managed to reduce deposit cost on a year-on-year basis and future trend in this respect will continue to be monitored by JCR-VIS. SBL has enhanced its loan portfolio in 2011; there is significant room to further leverage the balance sheet. The loan portfolio primarily comprises blue chip companies and risk of credit losses is considered low while market risk on balance sheet is also manageable. Quality of management also lends support to the assigned ratings.

For further information on this rating announcement, please contact Ms. Sobia Maqbool, CFA (Ext: 506) or the undersigned (Ext: 408) at 35311861-70 or fax to 35311873.



Jamal Abbas Zaidi
Deputy 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 2012 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .