The Pakistan Credit Rating Agency Limited (PACRA) has upgraded the short-term rating of JS Bank Limited to “A1+” (A One Plus) [Previous: ‘A1’]. The long-term rating of the bank has been maintained at “A+” (A Plus). These ratings denote a low expectation of credit risk while the capacity for timely payment of financial commitments is considered strong.
The ratings reflect steady fortification in JS Bank’s business profile. The bank continues to strengthen its market share in terms of deposits and advances. This has enabled the bank to build core revenues to a level – and growing – to adequately absorb costs. Lately, sizeable other operating income, an outcome of strong treasury operations, provided requisite boost to the profitability. This helped in consolidating capital adequacy, in turn, risk absorption capacity of the bank. The management intends to remain cautious – reflective in stated strategy of balancing advances growth and liquidity. The management is following a wholesome business strategy with prudent expansion targets through wide slate of liability and asset products. At the same time, it would continue to expand its operational scale. This is likely to add diversity and sustainability to the bank’s overall profile.
The bank aspires to sustain its overall growth momentum to enhance its competitiveness in a challenging banking industry. Consequent penetration – high share in system’s loans and deposits – besides ensuring sustainability in revenues would result in a further improvement of ratings. Meanwhile, rationalization in concentration levels would remain important.
JS Bank, in operations since December 2006, operates a network of 238 branches in 122 cities nationwide at the end-Dec14. Listed on the Karachi Stock Exchange since 2007, JSBL is a subsidiary (70%) of Jahangir Siddiqui & Co. Limited (JSCL). JS Bank, through its subsidiaries – JS Global Capital Limited (51%), and JS Investments Limited (52%) – and group associates, is well placed to develop a financial services hub. The ratings draw comfort from its close association with the ever strengthening JS Group. Mr. Jahangir Siddiqui, JS Group’s founder, chairs the bank’s eight-member BoD. Mr. Khalid Imran, the President/CEO of the bank, carries extensive experience in banking and he is supported by an able team. The bank has evolved relative stability in top team.
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