January 3, 2019 (MLN): Pakistan Credit Rating Agency has maintained entity ratings of Bank AL Habib Limited at ‘AA+’ for long-term and ‘A1+’ for short-term, with a stable outlook forecast.
The rating reflects the bank's sustained performance, exceptional asset quality, satisfactory financial profile and healthy liquidity. It has solidified its relative positioning in the universe of large sized banks by improving its market share in terms of deposit base and advances book.
The bank continued with its strategy for outreach expansion – adding significant branches every year – resulting in an uptick in cost-to-total net revenue.
Trade finance is the bank's hallmark, yet the bank is building alternative revenue streams, while exploring opportunities in CPEC related projects.
Furthermore, the rating draws comfort from the bank's experienced management team, prudent risk management policies and deep rooted relationship with clients – borrowers as well as depositors.
The rating is dependent on the bank's sustained risk profile. In the wake of heightened competition, profitable growth is a challenge while retaining the relative positioning in the industry. The equity base of the bank and CAR are satisfactory and may continually be enhanced in view of the expected growth in loans.
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