Samba Bank Limited

CREDIT RATING REPORT | Nov-25

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Rating History
Dissemination Date Long-Term Rating Short-Term Rating Outlook Action Rating Watch
25-Nov-25 AA A1+ Stable Maintain -
26-Jun-25 AA A1 Stable Maintain -
20-Dec-24 AA A1 Stable Maintain -
26-Jun-24 AA A1 Stable Maintain YES
06-Jul-23 AA A1 Stable Initial -
About the Entity

Samba Bank Limited is primarily owned by Saudi National Bank of Saudi Arabia, which holds an 84.51% stake. The Bank's CEO Mr. Ahmed Tariq Azam has resigned on 27th Apr'2025. Mr. Rashid Jahangir has been appointed as acting President and CEO of the bank with effect from May 22, 2025 till the time permanent President and CEO is appointed in due time.

Rating Rationale

The credit rating of Samba Bank Limited (“Samba” or the "Bank”) is underpinned by the strong sponsorship of its parent entity, Saudi National Bank (SNB) — the largest commercial Bank in the Kingdom of Saudi Arabia (KSA). SNB is expected to maintain its presence in Pakistan by strengthening its position through Samba Bank. This year, the Bank has outlined a refreshed direction that focuses on enhancing brand recognition, exploring Islamic banking, increasing branch presence, and growing its team. It also aims to broaden its revenue base by boosting non-core income, particularly by capturing a greater share of the remittances market, as around 35% of Pakistan’s remittances originate from KSA. On the advances side, the Bank will focus on consumer banking and supply chain financing, in addition to continuing corporate financing for Tier-I clients. Samba continues to actively optimize its earning asset mix in line with its credit risk strategy. During the period 9MCY25, the Bank strategically expanded its investment portfolio by Rs. 39.9bln, which was partially offset by a Rs. 4.1bln reduction in the loans and advances book. On the funding side, interbank borrowings increased by Rs. 30bln, whereas customer deposits increased by Rs. 10.7bln, representing a 10% increase. However, in light of the declining policy rate environment, the Net Interest Income (NII) decreased by 23%, amounting to Rs. 4.3bln (9MCY24: Rs. 5.6bln). Meanwhile, non-interest income remained relatively stable over the period. As a result, the Bank’s Profit After Tax (PAT) declined to Rs. 472mln, compared to Rs. 766mln in 9MCY24. This decline is primarily attributable to a compression in Net Interest Margins (NIMs). As of September 2025, the Bank’s Capital Adequacy Ratio stood at 24.6% (CY24: 23.8%). The consistent improvement in CAR over the years highlights the Bank’s strengthened risk absorption capacity, which underpins the stability of its credit profile and supports the currently assigned rating for its debt instruments. The Bank expanded its physical presence by adding 8 new branches, bringing the total to 65, with plans to open more during CY25 in different strategic locations across Pakistan to boost customer acquisition and market reach. On the digital front, an enhanced Mobile and Internet Banking platform was launched, demonstrating the robustness and scalability of the Bank’s digital infrastructure. On March 13, 2025, the State Bank of Pakistan (SBP) granted In-Principle approval to Samba Bank Limited (SBL) to commence Shariah-compliant business and operations, subject to the completion of the prescribed regulatory requirements and conditions.

Key Rating Drivers

The rating relies on the key factors which include maintaining asset quality, increasing its deposit market share, diversifying income streams, preserving a buffer in CAR, and upholding a strong governance framework.

REPORT CONTENTS
  1. Rating Analysis
  2. Financial Summary
  3. Rating Scale
  4. Regulatory Disclosure

Samba Bank Limited

rating analysis

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Profile
Structure

Samba Bank Limited ("Samba" or the "Bank") is a banking company listed on the Pakistan Stock Exchange.


Background

In 2007, Samba Financial Group (SFG) of Saudi Arabia acquired a 68.4% stake in Crescent Commercial Bank Limited (CCBL), which was subsequently rebranded as Samba Bank Limited in 2008. In 2021, Saudi National Bank (SNB) was formed by the merger of two big banks National Commercial Bank and Samba Financial Group. As a result of the merger, the shares of Samba Bank held by SFG were transferred to SNB by operation of law, establishing SNB as a leading banking entity in Saudi Arabia.


Operations

Samba operates as a scheduled Bank with its registered office in Blue Area, Islamabad, and has 65 (CY24: 57) branches across 18 major cities nationwide.


Ownership
Ownership Structure

The majority of the Bank’s stake, 84.51% is held by Saudi National Bank (SNB) while 9.67% lies with the general public, and the remaining stake vests with mutual funds (0.16%), public sector companies and corporations (0.26%), and others (5.40%).


Stability

The Bank’s shareholding structure is considered strong, with Saudi National Bank (SNB) as its major shareholder.


Business Acumen

SNB, the largest financial group in Saudi Arabia, is government-owned and operates globally in eight countries with a significant presence across diverse sectors. 


Financial Strength

SNB’s subsidiaries include SNB Capital Company (SNBC), NCB Capital Dubai, NCB Capital Real Estate Investment Company (REIC), SNB Markets Limited, and Al-Ahli Insurance Services Marketing Company. The equity of SNB stood at SAR 179.78bln at the end of 9MCY25 (CY24: SAR 171.37bln).


Governance
Board Structure

The Bank's Board structure primarily revolves around its group. There are eight directors on the Board, including the Chairperson and the Acting President & CEO of the Bank. The Chairperson, Mr. Mustafa Ilyas, also serves as an adviser to SNB and brings over 18 years of audit experience, which is focused exclusively on the banking sector.


Members’ Profile

Mr. Mustafa Ilyas, Chairperson of the Board of Samba Bank since October 2022, is a Chartered Accountant and a member of the Institute of Chartered Accountants England & Wales (UK). He serves as Adviser to Saudi National Bank (SNB), KSA. Prior to this, he was at PwC for over seventeen years, the majority of which focused exclusively on the banking sector. Ms. Kholood K. Al-Khelaiwi, a banking professional with over 20 years of experience, is currently Head of Talent Acquisition at SNB and previously led various treasury and trading roles. Hafiz Mohammad Yousaf, FCA, is a veteran Chartered Accountant with over 30 years of experience and fellowships from ICAP, AICPA, and Canadian accounting bodies. Ms. Zeeba Ansar, a corporate banking leader with 27+ years of experience, has held senior roles at NIB Bank Limited, United Bank Limited, Faysal Bank, and Deutsche Bank. Currently, she serves on multiple corporate boards. Mr.Fahad A. Al Hunaiti is a seasoned financial executive with 17 years of experience in banking and investment management, currently serving as Head of Principal Strategies at Saudi National Bank. He holds a Finance degree from KFUPM with executive education from Wharton and Columbia Business Schools. Mr. Mazen Ali AlDhabi is a seasoned banker with over 20 years of management experience across board governance, audit, compliance, engineering, and risk management, including more than a decade in operational risk. He holds an MBA from Brunel University (UK) and an MSc in Industrial Engineering from King Abdulaziz University (Saudi Arabia). Mr. Shafqaat Ahmed brings 48 years of banking experience, including 30 years as Country Head/CEO of,  Al Baraka Bank in Pakistan, where he contributed significantly to its growth., He holds a degree in Economics from Foreman Christian College, Lahore. He also served as Vice Chairman of the Pakistan Banks Association and is a fellow of the Institute of Bankers in Pakistan. Mr. Rashid Jahangir is the Acting President & Chief Executive Officer of Samba Bank Limited. He has been appointed as the acting President and CEO of the Bank, effective May 22, 2025. He brings extensive experience in strategic banking leadership and operations.


Board Effectiveness

The Bank has a process in place to enhance the overall effectiveness of the BOD, it’s committees, and individual directors on annual basis. To ensure effective governance, the Board has formed four committees, namely, (i) Audit Committee, and (ii) Risk Committee, iii) Nomination and Remuneration Committee and iv) IT Committee.


Financial Transparency

The Bank ensures financial transparency through strong internal and external audit mechanisms. The Audit & Risk Review (ARR) function conducts periodic audits of branches and departments to monitor compliance with regulatory requirements. The Compliance Function supports senior management in managing regulatory obligations through regular reviews and advisories. The Audit Committee plays a key role in ensuring that the financial statements fairly represent the Bank’s financial position. For the year ended December 2024, external auditors M/s KPMG Taseer Hadi & Co. expressed an unqualified opinion on the Bank’s financial statements. With the completion of KPMG’s five-year term, the Board, on the Audit Committee’s recommendation, has approved the appointment of A.F. Ferguson & Co. as statutory auditors for 2025 and onwards. 


Management
Organizational Structure

The Bank operates through a well-defined organizational structure headed by the President & CEO. The organization is structured along functional lines,  with the various department heads, along with the management committees, reporting directly to the President and CEO.


Management Team

The Bank's President & CEO, Mr. Ahmed Tariq Azam, has resigned from the position on April 28th, 2025. Mr. Rashid Jahangir has been appointed as acting President and CEO of the Bank with effect from May 22, 2025, till the time a permanent President & CEO is appointed in due time. Mr. Rashid Jahangir brings extensive experience in strategic banking leadership and operations. Mr. Imran Kazim, Group Head Operations, Technology & Admin, specializes in streamlining operational processes. Mr. Syed Kamran Masood, Chief Credit Officer, brings deep expertise in credit risk assessment and lending strategy. Mr. Sitwat Rasool Qadri, Chief Internal Auditor, has a proven track record in internal audit, governance, and risk control. Ms. Samina Hamid Khan, Chief Risk Officer, has rich experience in enterprise risk and regulatory compliance frameworks. Mr. Farrukh Haider, Group Head Global Markets & FIs/Treasurer, is an expert in capital markets, treasury, and institutional banking. Mr. Syed Ali Raza, Chief Lending Officer, has substantial experience in managing corporate finance and credit portfolios. Mr. Basit Hamayun, Chief Financial Officer, is responsible for financial strategy, reporting, and overall fiscal management. Mr. Syed Zia-ul-Husnain Shamsi, Group Head Legal Affairs, IRM & Company Secretary, possesses deep expertise in corporate law, compliance, and legal governance.


Effectiveness

The Bank has various committees in place at the management level to oversee its day-to-day operational matters and take decisions to implement the strategy outlined by the board. These include (i) Executive Team, (ii) Investment Committee, (iii) Asset and Liability Committee (iv) Management Credit Committee, (v) Real Estate Committee (vi) Remedial Assets Committee (vii) IT Steering Committee.


MIS

Samba Bank Limited has deployed Temenos T24 as its centralized core banking system. It includes all the basic modules including branch banking, trade finance, corporate loans, and anti-money laundering. Samba Bank has undergone a significant technological transformation, upgrading its ATM controller, card management and fraud risk management system to the advanced BPC system. The Bank has enhanced customer experience through digital touchpoints including ATMs and launching a new Samba Digital Platform encompassing internet, mobile banking and electronic KYC module.


Risk Management Framework

The Board has formed special committees named Integrated Risk Management Committee (IRMC), Management Credit Committee (MCC), and Country Risk and Compliance Committee (CRCC) to manage the credit, market, operational and other risks. The supervision and oversight of the Bank's operations is managed by a eleven-member team, including the President & CEO and the Group heads of each business and support function.


Business Risk
Industry Dynamics

During the year, Pakistan's Banking sector's total assets posted growth of ~15.98% YoY whilst investments surged by ~14.68% to PKR ~29.4trln (endDec23: PKR ~25.6trln). Gross Advances of the sector recorded growth of ~29.11% to stand at PKR ~16.914trln (end-Dec23: PKR ~13.101trln). Non-performing loans witnessed an increase of 7.35%% YoY to PKR ~1,067bln (end-Dec23: ~994bln). The CAR averaged at 20.4% (end-Dec23: 19.4%). Looking ahead, with the expected monetary rate cut, Banks are likely to sustain some dilution in profitability by CY25.


Relative Position

The Bank holds a customer deposit base of PKR 106bln other than financial institutions, at end-December 24 (end-Dec23: PKR 113bln). On such basis, the market share of deposits of the Bank slightly dipped to 0.36% (end-Dec23: 0.43%).


Revenues

In light of the declining policy rate environment, In 9MCY25 the Net Interest Income (NII) decreased by 23%, amounting to Rs. 4.3bln (9MCY24: Rs. 5.6bln), which is attributable to decrease in policy rate from 17.50% in September’24 to 11.00% in September’25. The markup earned was recorded as PKR 16.5bln (9MCY24: PKR 22.4bln). The contribution of markup from investments stood at 9MCY25: PKR 11bln (9MCY24: PKR 12.2bln) and advances remained low at 9MCY25: PKR 5.2bln (9MCY24: PKR 9.5bln). Non-interest income increased by PKR 96 mln, reaching PKR 1,412mln, driven by capital gains of PKR 547mln on investments, foreign exchange income of PKR 505mln and fee and commission income of Rs. 279mln. In addition, the Bank realized a gross capital gain of Rs. 714mln in its FVOCI investment portfolio, which has been directly recognized in the Statement of Changes in Equity (SOCE) in accordance with IFRS-9 requirements.


Performance

During 9MCY25, non-mark-up income increased by 7% to stand at PKR 1,413mln (9MCY24: PKR 1,317mln). The non-markup income to total income inched up to 24.7% (CY24: 18.7%). Despite undertaking key strategic initiatives, including the expansion of the branch network to 65 branches during the nine-month period ended compared to 47 branches in the corresponding period last year, operating cost declined by 1%, reflecting the Bank’s continued emphasis on cost efficiency, productivity and operational discipline.


Sustainability

The Bank is continuously right-sizing its earning assets mix vis-à-vis credit risk. During the year, the Bank successfully expanded its branch network by adding 8 new branches, increasing the total to 65. This expansion strengthens market presence, enhances customer accessibility, and supports broader retail banking growth. The Bank plans to expand its network by opening 12 new branches while strategically enhancing its digital footprint to improve accessibility and customer experience.


Financial Risk
Credit Risk

In 9MCY25, the Bank’s net advances decreased by 7.3% and stand at PKR 51.9bln (end-Dec24: PKR 56bln). The Bank’s advances to deposits ratio (ADR) decrease in 9MCY25 and stood at 44.1% (endDec 24: 52.3%) mainly on the back of a decline in advances and an increase in deposit base.


Market Risk

At end-Sep25, the investment portfolio reflected an expansion of 40% to PKR 139.6bln (end-Dec24: PKR 100.2bln). Government securities continue to dominate the overall investment book (end-Sep25: 98.1%, end-Dec24: 97.52%). Pakistan Investment Bonds (PIBs) contributed PKR 66.67bln. The overall investment mix of the Banks signifies risk risk-averse approach in changing macroeconomic conditions of the Country.


Liquidity and Funding

The Bank currently maintains a liquidity buffer that is sufficient to cater to any adverse movement in the cash flow maturity profile. 98.1% of SBL's investment portfolio consists of government securities. Additionally, the overall liquidity ratio stood at 65.1% (CY24: 68.8%). The current account ratio (CA) stood at 29% (CY24: 20%), the saving account ratio (SA) stood at 24% (CY24: 23%), and the CASA ratio stood at 53% (CY24: 42%).


Capitalization

As of Sep'2025, the Bank’s Capital Adequacy Ratio stood at 24.6% (Dec 2024: 23.8%), with a Tier I CAR of 18.1% (CY24: 17.4%), in full compliance with SBP’s minimum thresholds. The Bank’s equity base stood at PKR 18.2bln as of 9MCY25, up from PKR 17.2bln at the end of CY24.


 
 

Nov-25

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Samba Bank Limited

financial summary

(PKR mln)

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Sep-25
9M		 Dec-24
12M		 Dec-23
12M		 Dec-22
12M
A. BALANCE SHEET
1. Stage I | Advances - net 51,442 55,724 72,553 74,179
2. Stage II | Advances - net 0 0 0 0
3. Stage III | Non-Performing Advances 10,810 9,921 7,335 5,261
4. Stage III | Impairment Provision (10,278) (9,576) (6,451) (4,986)
5. Investments in Government Securities 136,231 97,796 67,724 74,838
6. Other Investments 3,454 2,480 2,688 2,066
7. Other Earning Assets 12,373 1,368 9,231 8,378
8. Non-Earning Assets 27,947 24,773 25,655 19,338
Total Assets 231,979 182,486 178,734 179,074
6. Deposits 117,803 107,142 114,732 105,244
7. Borrowings 77,083 47,467 35,977 50,823
8. Other Liabilities (Non-Interest Bearing) 18,824 10,652 11,662 8,354
Total Liabilities 213,709 165,261 162,371 164,421
Equity 18,269 17,225 16,363 14,653
B. INCOME STATEMENT
1. Mark Up Earned 16,592 28,721 28,705 22,545
2. Mark Up Expensed (12,287) (21,395) (20,604) (17,811)
3. Non Mark Up Income 1,413 1,687 1,208 244
Total Income 5,718 9,013 9,310 4,978
4. Non-Mark Up Expenses (3,904) (5,351) (4,830) (4,059)
5. Provisions/Write offs/Reversals (789) (1,758) (2,286) (1,845)
Pre-Tax Profit 1,025 1,904 2,193 (926)
6. Taxes (553) (1,204) (958) 498
Profit After Tax 472 699 1,235 (428)
C. RATIO ANALYSIS
1. Performance
Net Mark Up Income / Avg. Assets 2.8% 4.1% 4.5% 2.5%
Non-Mark Up Expenses / Total Income 68.3% 59.4% 51.9% 81.5%
ROE 3.5% 4.2% 8.0% -2.8%
2. Capital Adequacy
Equity / Total Assets (D+E+F) 7.9% 9.4% 9.2% 8.2%
Capital Adequacy Ratio 24.6% 23.8% 21.3% 18.7%
3. Funding & Liquidity
Liquid Assets / (Deposits + Borrowings Net of Repo) 65.1% 68.8% 46.6% 41.6%
Net Financial Assets to Deposits Ratio [(Total Finances - net + Non-Performing Finances - net) / Deposits] 44.12% 52.33% 64.01% 70.74%
Current Deposits / Deposits 27.0% 19.8% 22.2% 22.4%
Saving Deposits / Deposits 24.4% 22.6% 21.8% 28.1%
4. Credit Risk
Impaired Loan Ratio | [Stage III | Non-Performing Advances / Gross Advances] 17.2% 15.0% 9.1% 6.5%
Non-Performing Finances - net / Equity 2.9% 2.0% 5.4% 1.9%

Nov-25

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Samba Bank Limited

rating scale

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Nov-25

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Samba Bank Limited

regulatory disclosure

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  1. Rating Team Statements
    1. Rating is just an opinion about the creditworthiness of the entity and does not constitute a recommendation to buy, hold, or sell any security of the entity rated or to buy, hold, or sell the security rated, as the case may be. (Chapter III; 14-3-(x))
    2. Conflict of Interest
      1. The Rating Team or any of their family members have no interest in this rating (Chapter III; 12-2-(j))
      2. PACRA, the analysts involved in the rating process, and members of its rating committee and their family members do not have any conflict of interest relating to the rating done by them (Chapter III; 12-2-(e) & (k))
      3. The analyst is not a substantial shareholder of the customer being rated by PACRA [Annexure F; d-(ii)]
      4. Explanation: for the purpose of the above clause, the term "family members" shall include only those family members who are dependent on the analyst and members of the rating committee.
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    3. PACRA does not make proposals or recommendations regarding the activities of rated entities that could impact a credit rating of the entity subject to rating. (Chapter III; 10-7-(k))
  3. Conduct of Business
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  6. Probability of Default
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Nov-25

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