Press Release

VIS Reaffirms Corporate Governance Rating of Allied Bank Limited at CGR-9+

Karachi, December 21, 2020: VIS Credit Rating Company Limited (VIS) has reaffirmed the Corporate Governance Rating of Allied Bank Limited (ABL) at “CGR-9+”. The rating signifies very high level of corporate governance. The previous rating action was announced on April 02, 2020.


The corporate governance ratings are based on evaluation of key governance areas of the rated institution, including regulatory compliance, ownership structure, composition and operations of the Board of directors and executive management, self-regulation, financial transparency and relationship with the stakeholders. The assigned rating incorporates a well-established corporate governance framework rolled out by the bank supplemented by strong financial transparency and effectively functioning board and management level committees. Management team of the institution comprises seasoned professionals; stability in the same is a key rating contributor. Level of financial and qualitative disclosures in the public domain is satisfactory. Moreover, overall control environment of the institution is considered strong.


The rating reflects effective and proactive approach of the Board for strategic alignment of the bank’s manifestos with implementation of the same by the management on both operational and tactical levels. The ratings incorporate efficient and productive two-way communication amongst stakeholders, directors and management, for mitigation of any change adversely impacting the operating dynamics of the bank; the same has been imperative in maintaining ABL’s risk profile during the current pandemic crisis. The rating derives strength from major headways made on information technology (IT) front through digitalization and automation to assist the banks’ growth prospects along with cost rationalization during the medium to long-term. IT and network support extended to the entire workforce during lockdown while maintaining information security played a significant role in keeping the institution afloat during unprecedented pandemic situation Moreover, risk rating of branches showed improvement during the period under review with increased focus on rectification of recurring issues along with no major fraud instances reported. The rating takes comfort from structured succession plan in place resulting in smooth transition of responsibilities in the hierarchical pyramid.


For further information on this rating announcement, please contact Ms. Maham Qasim (042-35723411-13, Ext. 8010) and/or the undersigned at 021-35311861-66 (Ext. 201) or email at info@vis.com.pk .


Faryal Ahmad Faheem
Deputy CEO




Applicable Rating Criteria: Corporate Governance Rating (August 2017)
https://www.vis.com.pk/kc-meth.aspx

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 2020 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .