PACRA upgrades SNBL's long term entity rating to AA

July 02, 2026 (MLN): Soneri Bank Limited (PSX:SNBL)  has had both its entity ratings and its Tier 1 Term Finance Certificate rating upgraded by the Pakistan Credit Rating Agency Limited (PACRA), with outlooks maintained as stable across the board.

The entity ratings were upgraded to 'AA/A1+' (Long Term/Short Term) from 'AA-/A1+' , up from the previous action of June 25, 2025. Separately, the bank's Tier 1 TFC long term rating was upgraded to 'A+' from 'A'. 

The upgrade reflects a structurally strengthened liability franchise, sustained earnings momentum, and continued progress in trade finance.

The bank's deposit mix has improved steadily, with the CASA ratio strengthening over the past several years and current deposits growing well ahead of the overall base, particularly in newly opened branches.

This low-cost funding base was described as relationship-anchored rather than rate-sensitive, evidenced by a stable and higher-than-historical spread.

Profitability improved across both funded and non-funded lines, with net markup income and profit before tax posting strong multi-year growth on the back of efficient fund deployment and cost management.

Fee and commission income nearly doubled over the period, with growth ranking among the industry's better performers.

The bank's position was also supported by continued investment in alternate delivery channels, payment solutions, and core banking infrastructure in line with industry trends.

Trade finance emerged as a notable growth driver, with foreign trade volumes more than doubling over the past five years.

This lifted the bank's market share to its highest-ever level, helped it cross a landmark trade volume milestone, and placed it third among major banks in terms of trade growth rate, reinforcing its positioning as a credible trade-finance partner.

Digital banking activity scaled up meaningfully, with transaction values and volumes rising steadily amid gradual customer migration toward digital channels alongside continued branch expansion.

Asset quality strengthened considerably, with the infection ratio falling to its lowest level in over a decade and improving the bank's industry ranking, while both general and specific coverage ratios rose substantially, reinforcing loss-absorption capacity and balance sheet resilience.

Branch network expansion continued at pace, marking the bank's largest expansion phase to date.

Islamic banking operations also expanded their contribution to the overall franchise, growing their share of the bank's assets, deposits, and advances.

Looking ahead, the bank has outlined a three-year strategic roadmap centered on digital adoption, sustainable growth, market expansion, and customer service, with targets including further branch expansion, growth in total assets and deposits, and continued scale-up in trade business volumes as a core pillar of future non-funded income.

PACRA noted that the ratings remain dependent on the bank's ability to sustain profitability, manage asset quality, and maintain adequate capitalization and liquidity buffers, and that any material deterioration could impact the ratings.

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