The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short-term entity ratings of Bank Alfalah Limited at “AA” (Double A) and “A1+” (A one plus), respectively. The ratings of three unsecured subordinated TFC issues of PKR 650mln, PKR 1,250 mln and PKR 1,325 mln are maintained at “AA-” (Double A Minus). These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.

BAL’s ratings reflect its strengthening position in the banking sector, an outcome of its sustained, but focused, growth in recent years that has fortified its ability to withstand the intensifying competitive pressures. Although the bank’s profitability is subdued compared to peers, it is indicative of its low-margin high volume business philosophy.  The bank has demonstrated the capacity to raise its capital, both Tier 1 & 2, to cater for its growth targets. Meanwhile, the ratings recognize the continuing support of financially strong sponsors as a key factor.

About the bank: The Abu Dhabi Group, comprising prominent members of the ruling family and leading businessmen of UAE, own the majority shareholding in BAL since its privatisation in 1997. The bank is listed on the Karachi and Lahore Stock Exchange. The chairman of the board, H.E. Sheikh Hamdan Bin Mubarak Al Nahayan, is also Federal Minister of Public Works, United Arab Emirates.  The chief executive of the bank is a career banker with over 43 years experience both within Pakistan and abroad, and has been with the bank since its incorporation. A team of experienced professionals assists him.