Press Release
JCR-VIS Reaffirms Entity Ratings of Dubai Islamic Bank Pakistan Limited
Karachi, June 30, 2011: JCR-VIS Credit Rating Company Limited has reaffirmed the medium to long term entity rating of Dubai Islamic Bank Pakistan Limited (DIBPL) at ‘A’ (Single A) and short-term rating at ‘A-1’ (A-One). Outlook on the assigned ratings is ‘Stable’.
DIBPL is a wholly owned subsidiary of Dubai Islamic Bank PJSC, United Arab Emirates, which has been rated ‘A/F1’ by an international rating agency. DIBPL is operating locally with a network of 62 branches, with plans to set up 13 additional branches in the on-going year. While growth in deposits has remained limited in the last one and a half years, DIBPL has managed to bring about improvement in deposit profile by reducing reliance on large ticket institutional deposits and reduction in cost of deposits in the on-going year. Liquidity indicators have slightly improved on a timeline basis on account of book building in GoP Ijarah Sukuk.
The management is working to bring about improvement in operational efficiency. Capitalization is considered adequate in view of the current level of CAR and the bank’s future growth plans, along with a requirement to maintain it at a minimum of 15% over the next two years.
For further information on this rating announcement, please contact Ms. Sobia Maqbool, CFA (Ext: 506) or Ms. Sabeen Saleem, CFA (Ext: 510) at 35311861-70 (10 Lines) or fax to 35311872-73.
Javed Callea
Advisor
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 2011 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .