PACRA Maintains the Entity Ratings of JS Bank Limited.

The assigned ratings of JS Bank Limited (“JSBL” or the “Bank”) reflect the stable market positioning, sound financial profile, and expanding customer franchise, underpinned by its continued emphasis on technology-driven banking solutions. The Bank’s strengthened positioning following the acquisition of majority stake in BankIslami Pakistan Limited has enhanced its scale and market outreach. The positive fundamentals of the Islamic banking industry in general also lend support to the ratings. On a consolidated basis, JSBL maintained its customer deposit market share at ~4% during CY25, consistent with the preceding year, reflecting the Bank’s stable franchise positioning and sustained deposit base within the competitive banking landscape. It has also developed a strong technology-driven profile through continued investment in digital banking services, with “Zindigi” emerging as a key pillar of its digital presence. During CY25, the Zindigi app has shown strong growth, with throughput rising to PKR 380bln (CY24: PKR 206bln), deposits through the app reaching PKR 7.9bln (CY24: PKR 6.7bln), and downloads increasing to 14.2mln (CY24: 12.3mln).
The Bank’s advances portfolio grew by 11% during CY25, primarily driven by the individual, wholesale & retail trade, and financial sectors, reflecting the management’s continued focus on expanding its core lending franchise. Asset quality pressure was evident with non-performing loans standing at PKR 23.2bln (CY24: PKR 21.3bln); however, the Bank maintained adequate provisioning buffers. The infection ratio witnessed a slight improvement, supported by growth in the performing advances portfolio. The Bank also continued to strengthen its funding profile, supported by growth in deposits and improved franchise penetration. Importantly, current accounts surpassed savings accounts in contribution, reflecting a favorable shift toward granular and low-cost funding sources, expected to support margin stability and reduce funding costs going forward. Whereas, the ADR improved to 46% at the end of CY25, remaining notably higher than industry average of ~38%. The Bank’s capitalization profile remained adequate, supported by earnings retention and a strengthened equity base. The Bank’s equity base stood at PKR 46.7bln (CY24: PKR 43.7bln) at the end of CY25. Whereas, the Capital Adequacy Ratio (CAR) was reported at 13.12% (CY24: 13.24%), maintaining compliance with the minimum regulatory threshold. During CY25, the Bank’s performance remained satisfactory despite margin pressures arising from the declined interest rate environment. Net markup income remained broadly stable at PKR 27.1bln (CY24: PKR 27.3bln), supported by volumetric growth and improvement in deposit mix. Going forward, potential revaluation pressures emanating from the rising interest rate environment are expected to be mitigated through strengthening core profitability and improved margin dynamics. Furthermore, the Bank’s strategy remains focused on strengthening its low-cost deposit franchise, expanding digital banking penetration, and improving operational efficiency.
The ratings remain dependent on the Bank’s ability to maintain asset quality, preserve capitalization buffers, and diversify income streams while sustaining strong governance standards. Although the rising interest rate environment may lead to revaluation losses, the impact is expected to be mitigated through improved margins, stronger profitability, and growth in the equity base.

About the Entity
JS Bank Limited (JSBL), incorporated in March 2006, commenced its banking operations on December 30, 2006. JSBL is a subsidiary (~71.21%) of Jahangir Siddiqui and Co. Limited (JSCL), 11.91% owned by the Randeree Family, whereas the rest is widely spread. The overall control of the Bank vests in the Board of Directors (Board) including the CEO. Mr. Basir Shamsie joined as CEO in July 2018. He possesses work experience of more than 34 years, primarily in the banking sector. He is supported by a team of highly qualified and seasoned professionals.