The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short-term entity ratings of Bank AL Habib Limited (BAHL) at “AA” (Double A) and “A1+” (A One Plus) respectively. The rating of the unsecured, subordinated TFC issue of PKR 1,350mln has also been maintained at “AA-” (Double A Minus). The ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.

The ratings reflect BAHL’s continuing appetite for low risk while sustaining relative performance from core operations. This is reinforced by the management’s conscious efforts of preserving the established franchise value through service quality and prudent banking practices. At the same time, the management remains focused on business expansion as well as product innovation to maintain its position in the fast changing dynamics of the banking sector. Meanwhile, the continuous effort of the bank to further strengthen the risk management systems is also a key-rating factor.

About the bank: BAHL’s sponsors are members of the Habib family – the oldest and a distinguished name in Pakistan’s banking circles. They are active in the management of the bank and are backed by a team of experienced professionals most of which have been with the bank since its inception.

The bank’s main activities are short-term lending, mainly trade finance related and seasonal running finance. Its future strategy envisages maintained growth through further expansion of branch network, while maintaining the Habib hallmark of a conservative risk profile. BAHL continues to strengthen its technological platform and human resource base.