Lahore, December 11, 2020 (PPI-OT): Samba Bank has a very strong Capital Adequacy Ratio (“CAR”) (Dec19: 18%, Sep20:19.6%). This reflects the impeccable risk absorption capacity, which is integral to the rating. The deposit base of the Bank suggests room for further improvement and deposit mobilization in order to strengthen Bank’s Advances-to-Deposits ratio and overall liquidity profile. With the issue of this TFC, the bank intends to augment its growth in high-yielding lending segments while creating a reasonable buffer in its capital ratios for risks that may emerge from the ongoing COVID-19 and its consequential stress on the businesses.
The bank has a growth stance in the future and particularly intends to target the small and medium enterprises wherein the Bank has expanded outreach. The parentage of the Bank is already strong, and with the envisaged merger of Samba Financial Group of Kingdom of Saudi Arabia (bank’s parent entity) and National Commercial Bank of Kingdom of Saudi Arabia on the horizon, the Bank is well poised to take the positive benefits in Pakistan.
The risk metrics and the compliance ratios are well in range and further adherence will be important. The rating is dependent on the Bank’s sustained risk profile. In the wake of heightened competition, profitable growth while retaining the relative positioning in the industry will be a challenge. The equity base of the bank is satisfactory.
For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com
The post PACRA Assign Preliminary Rating to Samba Bank Limited | PPTFC – Tier II appeared first on Business News Pakistan.