Mashreq Bank receives 'AA' long term rating from PACRA

January 30, 2026 (MLN): Pakistan Credit Rating Agency (PACRA) has assigned initial entity ratings of AA (Long Term) and A1 (Short Term) to Mashreq Bank Pakistan Limited (MBPL), with a Stable Outlook, based on the Bank’s strong sponsor backing, solid capital base, and robust digital infrastructure.

The ratings reflect the bank’s position as a wholly owned subsidiary of Mashreq Bank P.S.C., UAE, one of the Middle East’s oldest and most resilient banking groups.

With operations spanning over 14 international markets and a proven track record of sound credit fundamentals, Mashreq Bank P.S.C. provides the bank with strong strategic oversight, advanced technology platforms, and deep digital-banking expertise key pillars supporting long-term stability and growth.

The Parent Bank, backed by a robust equity base of approximately Rs3 trillion, holds strong international credit ratings of A (Fitch), A (S&P), and A3 (Moody’s).

Established in 2023 as part of Mashreq Bank P.S.C.’s global expansion strategy, MBPL was launched as a Digital Retail Bank and has successfully completed all major regulatory milestones.

These include SBP’s No Objection Certificate in January 2023, In-Principle Approval in September 2023, and the grant of a restricted Digital Retail Banking (DRB) license in December 2024 for pilot operations.

Following the successful completion of the pilot phase and fulfilment of regulatory requirements, MBPL attained scheduled bank status on September 15, 2025, paving the way for full-scale digital retail banking operations in Pakistan.

MBPL operates through two key digital platforms: Mashreq NEO and Mashreq NEOBiz. Mashreq NEO, already launched, serves individual customers with a range of innovative offerings, including digital accounts, high-yield savings, current accounts, and NRP accounts.

Mashreq NEOBiz set to launch in the coming months will be Pakistan’s first fully digital banking solution for entrepreneurs and business owners, delivering seamless, secure financial services through a single integrated platform.

The Bank’s technology architecture is powered by the Oracle FLEXCUBE core-banking system, complemented by AI-driven risk management, strong cybersecurity frameworks, and advanced operational resilience. In its initial phase, MBPL is focusing on deposit mobilisation through innovative, customer-centric products.

These include Pakistan’s first Shariah-compliant, profit-bearing current account, offering returns of up to 5%, alongside Islamic savings accounts and competitively priced conventional products.

The strategy also targets remittance inflows and digitally savvy customers. Credit cards are planned for launch in early 2027, while lending operations will commence once a stable deposit base is achieved.

MBPL’s capital position remains strong, supported by periodic equity injections from the Parent Bank. As of September 2025, the Bank’s share capital stood at Rs9.4 billion, with equity of Rs2.4 billion after accumulated losses. Further capital infusions are planned to support growth.

The investment portfolio, comprising entirely government securities, stood at Rs6.5 billion, with market risk managed through standardized sensitivity-based limits.

Overall, the assigned ratings highlight MBPL’s strong sponsor support, sound governance framework, and solid financial backing.

 PACRA notes that the Bank’s credit profile is underpinned by the financial strength, digital expertise, and continued capital and operational support of Mashreq Bank P.S.C., particularly during MBPL’s early growth phase.

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