PACRA maintains entity ratings of Mobilink Microfinance Bank Ltd

November 08, 2018 (MLN): Pakistan Credit Rating Agency (PACRA) has maintained entity ratings of Mobilink Microfinance Bank Limited at ‘A’ for long-term and ‘A1’ for short-term, with a ‘positive’ outlook forecast.

According to the rating agency, the ratings take comfort from the bank's relationship with a leading global telecom group - Veon (formerly Vimplecom) - and with Pakistan's largest cellular operator – Jazz (formerly Mobilink).

Sponsors' commitment to the bank is witnessed in the form of both technical collaboration and financial support.

Ensuing synergies are strengthening the bank's penetration in target markets.

As per the report, leveraging on the sponsors network and renowned brand name (JazzCash), branchless banking domain is taking on a rapid growth and being reinforced with the aim of expanding Mobile-wallet accounts.

The bank held a market share of approximately 6% in the MFBs Gross loan portfolio and approximately 8% in the total deposits of the Microfinance industry as at End-June'18, says a report.

The bank's business model is directed towards fostering core and branchless banking simultaneously.

According to PACRA, the ratings take comfort on the financial risk profile depicted by healthy net interest/markup revenue (NIMR) on the backdrop of low cost of funds, translating into fine bottomline, while liquidity profile remains comfortable.

The ratings are dependent upon continued momentum of growth in digital banking domain, while expanding share in core banking landscape.

Meanwhile, growth in the business and penetration in the market is imperative to the ratings.

Mobilink Microfinance Bank Limited commenced its operations in 2012 as a nationwide Microfinance bank.

It is a wholly owned subsidiary of Global Telecom Holding (GTH), which in turn, is majority owned by Veon (formerly Vimplecom) - one of the world's largest telecom groups.

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