The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short-term entity ratings of First International Investment Bank Limited (Interbank) at ‘A' and ‘A1' respectively. These ratings, applicable to senior unsecured creditors of the bank, indicate a low expectation of credit risk and a strong capacity for timely payment of financial commitments.

Interbank's unsecured TFCs issue (Money Multiplier Series M1 – PKR 57mln) due for final redemption in March 2005 has been assigned a short-term rating of ‘A1' (A one).

The ratings reflect Interbank's good asset quality emanating from the bank's conservative stance towards risk, coupled with a stringent credit approval system. The ratings also take into account the bank's subdued profitability, mainly an outcome of its relatively thin spreads and high cost structure. However, at the same time, PACRA recognizes the management's efforts to expand its revenue base through enhancing participation in fee-based investment banking activities while maintaining a moderate growth in the financing portfolio.

About the bank: Interbank, incorporated in 1990, is a joint venture of the Packages Group, American Express Bank N.Y. and International Finance Corporation, who collectively hold majority of the bank's equity. The bank, listed on Karachi and Lahore Stock Exchanges, conducts business from three branches with the head office at Karachi. In order to increase the business volume, particularly from new investment banking products, the management also plans to expand the geographical outreach of the bank.

The current CEO, who joined the bank in June 2004, has over 20 years of banking and capital markets experience in various senior management positions in both local and foreign institutions.