PACRA Upgrades the Entity Ratings of Soneri Bank Limited

Soneri Bank Limited's ("SNBL" or the "Bank") rating upgrade reflects a structurally strengthened liability franchise, sustained earnings momentum, and continued sustainability and progress in trade finance. The Bank's deposit mix improved steadily, with the CASA ratio strengthening over the past several years and current deposits growing well ahead, especially in the new branches opened by the Bank. This low-cost funding base remains relationship-anchored rather than rate-sensitive, evidenced by a stable and higher spread than historically. Profitability improved across both funded and non-funded lines. Net markup income and profit before tax both posted strong multi-year growth, supported by right deployment of funds and efficient cost structure. Fee and commission income nearly doubled over the period, with growth ranking among the better performers in the industry. The bank’s position is supported by ongoing investment in alternate delivery channels, payment solutions, and core banking infrastructure that is broadly in line with industry trends. Trade finance has emerged as a notable growth driver. The Bank's foreign trade volumes more than doubled over the past five years, lifting market share to its highest-ever level and crossing a landmark trade volume milestone; the third-highest trade growth rate among major banks in the country. This reinforces the Bank's positioning as an increasingly credible trade-finance partner. Digital banking activity also scaled up meaningfully, with transaction values and volumes rising steadily, reflecting gradual customer migration toward digital channels alongside continued branch expansion. Asset quality strengthened considerably: the infection ratio fell to its lowest level in over a decade, improving the Bank's industry ranking, while both general and specific coverage ratios rose substantially, reinforcing loss-absorption capacity and balance sheet resilience. Branch network expansion continued at pace, with the Bank adding a large number of new branches in recent years, which is its largest expansion phase to date. Islamic banking operations also expanded their contribution to the overall franchise, growing their share of the Bank's assets, deposits, and advances. Looking ahead, the Bank has outlined a three-year strategic roadmap centered on digital adoption, sustainable growth, market expansion, and customer service. Targets include further branch network expansion, growth in total assets and deposits, and a continued scale-up in trade business volumes, positioning trade finance as a core pillar of future non-funded income growth.
The ratings remain dependent on the Bank's ability to sustain this profitability trajectory, manage asset quality through its ongoing balance sheet realignment, and maintain adequate capitalization and liquidity buffers through its Islamic conversion process. Any material deterioration in these areas could affect the assigned ratings.

About the Entity
Established in 1991, Soneri Bank Limited commenced operations in 1992. The Bank is primarily sponsored by the Feerasta Family and operates under the leadership of Mr. Amin A. Feerasta, Chairman, and Mr. Ahsan Mushahid Siddiqui, President & CEO (A), supported by an experienced Board and management team.