December 21, 2018 (MLN): Pakistan Credit Rating Agency (PACRA) has maintained entity rating of Soneri Bank Limited at ‘AA-‘ for long-term and ‘AA+’ for short-term, with a stable outlook forecast.
PACRA has also maintained debt instrument rating of Soneri Bank Limited TFC-II and Soneri Bank Limited Tier-I TFC at ‘A+‘ and ‘A’ for long-term respectively, with a stable outlook forecast.
The ratings reflect Soneri Bank’s sustained business profile as reflected in slightly higher net interest margin. The bank’s funding base comprise of deposits and borrowings.
The lending portfolio recorded growth of ~6% (against industry growth of 14%).
Non-Performing Loans witnessed a slight increase. Fee based income also witnessed some growth and needs to seek a higher stimulant.
The rating is a function of bank's ability to maintain its market position in the banking industry while strengthening its overall risk profile.
Bringing efficiency in operational structure is important for long term growth.
Meanwhile, a sustainable increase in system share and consequent profitability would be ratings positive.
