The Pakistan Credit Rating Agency (PACRA) has assigned a long-term rating of “AA” (Double A) and a short-term rating of “A1+” (A One Plus) to Faysal Bank Limited (FBL). These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.

The ratings reflect the bank’s very strong risk absorption capacity, supplemented by sound credit quality of the loan book. Meanwhile, the strong capital structure supports the relatively high exposure in the stock market. While earning reasonably competitive returns on core banking operations, the overall profitability is augmented by healthy returns from non-interest based avenues, resulting in strong performance indicators.

The bank recorded appreciable growth in finances and deposits in recent years, leading to increase in its system share. The fee-based income of the bank is comparable with peers, attributable to the bank’s strong investment banking division and advisory function, generating sizeable fee income, besides facilitating expansion in the corporate loan book. The expanding core business, investment banking strengths, speedy decision making process and substantial risk absorption capacity are likely to sustain the bank’s position among peers despite the intensifying competitive pressures.

About the bank: The bank started operations in Pakistan in 1987, first as a branch set up of Shamil Bank of Bahrain and since 1995, as a locally incorporated bank under the present name of Faysal Bank Ltd. On January 01, 2002 AL-Faysal Investment Bank, another group entity merged into FBL.

The majority shareholding (67%) of FBL is owned by Dar Al-Maal Al-Islami Trust (DMI) through its various subsidiaries, including 45% holding by Shamil bank. The DMI group, headed by H.R.H. Prince Al Faisal Al Saud of Saudi Arabia, is registered in Bahamas with main offices in Geneva, Switzerland. DMI owns and operates an international network of Islamic Banks, Investment and Insurance companies. The current chief executive, a qualified professional having extensive local and international banking experience, has been associated with the bank since 1999.