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HomeEquityFuture losses on investment not anticipated for Bank of Khyber: PACRA

Future losses on investment not anticipated for Bank of Khyber: PACRA

June 26, 2019 (MLN): Pakistan Credit Rating Agency (PACRA) has maintained the entity ratings of Bank of Khyber (BoK) at ‘A’ for long-term and ‘A1’ for short-term. The outlook on the assigned ratings is ‘Stable’.

According to the press release issued by PACRA, the ratings incorporate association of the bank with the Government of Khyber Pakhtunkhwa (GoKP). The bank suffered sizable loss on its investment book, though the future losses are not anticipated. It is expected to be cushioned with future profits. The bank needs to beef up and elaborate its investment policy. The bank's CAR stand at 12.3% as at end-Dec18 (Tier-I: 12.2%) – it will need to be increased to 12.5% by end of this year. Profitability in operations is a crucial.

The ratings are dependent on bank's ability to hold its risk profile, while maintaining its relative market position. Improvement in the technology platform is critical to foster the control environment including reporting framework. Meanwhile, any significant infection in asset quality, in the wake of significant expansion in the loan book, and/or any intervention compromising the governance standards would impact negatively.

Copyright Mettis Link News

Posted on: 2019-06-26T11:34:00+05:00

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