Bank Alfalah assigned ‘AA+/A-1+’ ratings by JCR-VIS

KARACHI: JCR-VIS Credit Rating Company Limited (JCR-VIS) has assigned initial entity ratings of “AA+/A-1+” (Double A Plus/A-One Plus) to Bank Alfalah Limited (BAFL). Outlook on the assigned ratings is “Stable”.

The assigned ratings reflect the Bank’s diversified operations, healthy financial risk profile, strong sponsors and existing market presence.

BAFL has exhibited sustained improvement across key performance areas including asset quality, liquidity, capitalization and profitability. Majority owned by the Abu Dhabi Group (ADG), comprising some of the prominent members of UAE’s ruling family and leading businessmen, BAFL is the fifth largest private sector bank in the country with a market share of 5.8 percent in domestic deposits at end-September’2016. Presence in the overseas market (Bangladesh, Afghanistan and Bahrain) represents around 6.4 percent of total assets. BAFL also enjoys a sizeable Islamic footprint with 16.4 percent contribution to total assets.

Product portfolio of the Bank is extensive while key focus areas, going forward, include SME lending, transaction banking and shift towards digital banking.

Major portion of the Bank’s assets comprise exposure towards the sovereign/public sector. Aggregate exposure to the sovereign /public sector by way of investments and advances represents over half of total assets. Corporate loan book continues to remain the mainstay of the Bank’s lending operation with growth being also noted in consumer and SME lending.**