PACRA Maintains the Entity Ratings of Samba Bank Limited

The credit rating of Samba Bank Limited (“Samba” or the “Bank”) is underpinned by the strong backing of its parent company, Saudi National Bank (SNB)—the largest commercial bank in the Kingdom of Saudi Arabia (KSA). In calendar year 2024 (CY24), the Bank expanded its physical footprint by opening 10 new branches, increasing the total to 57. Plans are in place to launch an additional 20 branches across strategic locations in Pakistan during CY25, aiming to enhance customer acquisition and broaden market reach. On the digital front, Samba launched an upgraded Mobile and Internet Banking platform, reflecting the strength and scalability of its digital infrastructure. In line with its Islamic Vision 2027, the Board of Directors has, in principle, approved a strategic transition from conventional banking to a fully Shariah-compliant Islamic banking model. This move aims to align operations with Islamic principles while meeting evolving customer preferences in the domestic market. The current management is actively pursuing initiatives to improve the Bank’s overall standing, focusing on operational efficiency, strategic expansion, and long-term sustainability. These efforts are evident in the Bank’s continued investment in branch growth, digital infrastructure, and its planned shift to Islamic banking.
Financially, the Bank continues to optimize its earning asset mix in accordance with its credit risk strategy. In a declining policy rate environment, Net Interest Income (NII) fell by 9.6% to PKR 7.3 billion (CY23: PKR 8.1 billion), primarily due to margin compression. Non-interest income remained relatively stable over the period. Consequently, Profit After Tax (PAT) declined to PKR 699 million, compared to PKR 1.2 billion in CY23. The decrease in profitability is mainly attributed to compressed Net Interest Margins (NIMs) and higher operating expenses, driven by the Bank’s continued branch expansion and digital transformation initiatives. As of December 2024, the Bank’s Capital Adequacy Ratio (CAR) stood at 23.8%, up from 21.3% in December 2023. This steady improvement in CAR reflects Samba’s enhanced risk absorption capacity, reinforcing the stability of its credit profile and supporting the Bank’s currently assigned rating.
The rating relies on the ownership structure of the bank. Maintaining asset quality, increasing its deposit market share, diversifying income streams, preserving a buffer in CAR, and upholding a strong governance framework is also important.

About the Entity
Samba Bank Limited is primarily owned by the Saudi National Bank of Saudi Arabia, which holds an 84.51% stake. Mr. Rashid Jahangir, an experienced professional and a seasoned banker, is the President and CEO (Acting) of the Bank with effect from May 22, 2025. The Board comprises nine members, including the CEO and the Chairman. The Chairman of the Board is Mr. Mustafa Ilyas, and he has been serving as an adviser to Saudi National Bank, Kingdom of Saudi Arabia, since 2021.