The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (02-May-2007)
    PACRA Assigns Entity Ratings to JS Bank Limited
 

 
Analyst
Rana Nadeem
(+92-42-586 9504)
nadeem@pacra.com

 

 

 










 

 




 

 

 

 

 

Disclaimer
This press release is transmitted to you for this sole purpose of dissemination through your newspaper/magazine/agency. The press release may be used by you in full or in part without changing the meaning or context thereof but with due credit to PACRA. However, PACRA has the sole right of distribution of its press releases for consideration or otherwise through any media.

  

The Pakistan Credit Rating Agency (PACRA) has assigned the long-term and short-term entity ratings to JS Bank Limited (JSBL) of A- (Single A Minus) and A2 (A Two), respectively. These ratings denote a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.

The ratings reflect the sound banking platform inherited by JS Bank Limited from American Express Bank (AEBL) and its association with a strong diversified group. At the same time, the ratings recognize constraints likely to be faced by the bank in the early stages of its operations in an increasingly competitive banking environment. Although the management has designed a comprehensive business strategy, it is not much different from other peer banks. However, in the initial period, the bank is expected to benefit from established relationships and expertise of JS Group, particularly for fee-based avenues and capital market related operations.

About the bank:JS Bank Limited, listed on the Karachi Stock Exchange, commenced its operations on December 30, 2006. The bank was formed as a result of merger of Jahangir Siddiqui Investment Bank Limited and American Express Bank, Pakistan operations, with and into JSBL. The bank is a subsidiary (51% owned) of Jahangir Siddiqui & Company Limited (JSCL). Other important shareholders include NIT (8%), AEBL (6%), and State Life Insurance Corporation (6%). Starting as a traditional securities firm, JSCL has now acquired the status of a holding company for Jahangir Siddiqui Group, mainly for its stakes in the financial sector. Rated AA+ by PACRA, the company is embarked upon new initiatives with a dynamic approach in identifying new growth opportunities and a proven ability to take quick but prudent investment decisions. Mr. Jahangir Siddiqui, the founder of JS Group, chairs the seven-member BOD of the bank. Mr. Naveed Qazi, the CEO of the bank, has over 21 years of banking experience. His last assignment was with AEBL, as COO of Pakistan operations.

 

 
 
The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity.

PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings.

PACRA's opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.