JS Bank Limited: The Pakistan Credit Rating Agency Limited (PACRA) has upgraded the long-term entity rating of JS Bank Limited (JSBL) to ‘AA- (Double A Minus) [previously ‘A+ (A Plus)].
Meanwhile, short-term entity rating has been maintained at ‘A1+’ (A One Plus).
The ratings denote a very low expectation of credit risk and indicate very strong capacity for timely payment of financial commitments.
The ratings reflect strengthened relative position of JS Bank in the country’s competitive banking landscape.
This emanates from enhanced system share (approaching 2% of deposits at end-Sep16).
The benefit has trickled down whereby concentration - both in deposits and advances - is approaching adequate levels.
Expanded branch network is supporting deposit growth.
Meanwhile, JS Bank is carefully building its loan book; although asset quality is good.
The strategy is to i) foster penetration of existing branches whileexpanding the network beyond 300 branches over the near-term; ii) spreadadvances book through different products over multiple sectors; iii) buildnon-fund based income; and iv) hold strength in treasury operations.
JS Bank has adequate capital level (CAR at end-Sep16: ~12% primarily tier I).
However, credit expansion may put some pressure on CAR, for which the bankhas option to add support through tier II capital.
JS Bank is considered as amongst the fastest growing banks within Pakistan’s banking landscape with the support of its vast experienced management. The bank now has an online network of 277 branches and presence in over 138 cities across Pakistan. JS Bank is part of JS Group, one of Pakistan’s most diversified and progressive financial services group.
Fore more information, please visit: http://www.jsbl.com/
Follow Us on Facebook : https://www.facebook.com/JSBankLtd
