PACRA Maintains Entity Ratings of Samba Bank Limited

The assigned ratings of Samba Bank Limited (“Samba” or the “Bank”) continue to derive their primary strength from the strong sponsorship of its parent, Saudi National Bank (SNB), the largest commercial bank in the Kingdom of Saudi Arabia (KSA), which remains an important anchor for the Bank’s overall credit profile. In Dec'25, Najd Gateway Holding Company (the “Acquirer”), chaired by His Highness Prince Mansour bin Mohammed S. Al Saud, announced its intention to acquire approximately 84.51% of the ordinary shares of Samba Bank Limited from SNB. This development introduces a potential change in ownership structure and is being closely monitored for its implications on future sponsor support, governance, and strategic direction. However, the Bank’s business strategy and operations remain unchanged at present.
The ratings further incorporate the Bank’s sound capitalization, with the Capital Adequacy Ratio (CAR) exhibiting a steady upward trend and remaining well above regulatory thresholds, thereby providing a comfortable buffer against credit and market risks. Asset quality indicators remain satisfactory, supported by a conservative underwriting approach and a balanced asset mix between investments and advances, which helps contain concentration risks. Nonetheless, sustained asset quality performance remains important in view of evolving macroeconomic conditions and prevailing industry pressures. On the balance sheet side, total assets expanded by 13.1% YoY to PKR. 206.4bln (CY24: PKR. 182.5bln), primarily driven by growth in the investment portfolio, which increased by 17.0% to PKR. 117.4 bln and now constitutes 56.9% of total assets (CY24: 54.9%). This reflects a continued strategic preference for government securities. The advances portfolio also recorded an uptick by 7.8% to PKR 71.3bln (CY24: PKR 66.1bln), reversing the contraction observed in CY24. Management attributes this growth to renewed lending activity within the Corporate and Investment Banking Group from Q3CY25 onwards, supported by onboarding of new corporate relationships, alongside ongoing efforts to recover delinquent exposures and reduce portfolio infection levels. Total deposits increased by 11.0% to PKR 118.9bln (CY24: PKR 107.1bln)wherein the deposit mix has shifted towards a higher proportion of current and savings accounts, with the CASA ratio improving to 58% as of end-Dec’25 (end-Dec’24: 42%). However, borrowings increased at a faster pace of 22.9% to PKR 52.2bln, indicating that a portion of asset growth—particularly in the investment book—has been supported by wholesale funding sources. This evolving funding mix remains an area of analytical consideration from a liquidity and cost-of-funds perspective. Profit after tax (PAT) for CY25 stood at PKR 727mln, reflecting a modest increase of 4.0% over CY24. The improvement in bottom-line profitability masks a notable shift in earnings composition. Net interest income declined by 23.7% YoY to PKR 5,593mln (CY24: PKR 7,326mln), driven by margin compression in a declining policy rate environment, where asset yields adjusted more rapidly than funding costs. This decline was largely offset by a 26.1% increase in non-mark-up income to PKR 2,128mln (CY24: PKR 1,687mln), primarily supported by capital gains realized on the investment portfolio. While these gains supported profitability during the period, their non-recurring and market-dependent nature may limit sustainability in the absence of similar trading opportunities.
Going forward sustained asset quality, continued growth in the deposit base and market share, maintenance of a healthy capital adequacy buffer, and preservation of a strong governance and risk management framework will remain critical.

About the Entity
Samba Bank Limited is currently majority-owned by Saudi National Bank, which holds an 84.51% stake. In Dec'25, Najd Gateway Holding Company publicly announced its intention to acquire this stake, with an addendum to the Public Announcement of Intention issued in March 2026 outlining the acquirer’s capital structure. The transaction remains subject to regulatory approvals and completion of all requisite formalities. During CY25, the Bank witnessed a senior management transition, with Mr. Rashid Jahangir confirming the role of President and CEO in February 2026.