AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi, June 29, 2012 (PPI-OT): JCR-VIS Credit Rating Company Limited has maintained the medium to long-term entity rating of Burj Bank Limited (BURJ) at ‘A’ (Single A). Short-term rating has been upgraded from ‘A-2’ (A-Two) to ‘A-1’ (A-One). Outlook on the ratings is ‘Stable’.
Ratings assigned to BURJ incorporate the strength arising from Islamic Corporation for Development of the Private Sector (ICD), now one of the largest shareholders and also the key driver of future business strategy. With the change in leadership, the bank has set aggressive targets to increase its market share and footprint in the Islamic Banking Industry.
Growth was witnessed in the deposit base in FY11 and the on-going year, though there is room for improvement in terms of concentration related indicators. Expanding branch network is expected to facilitate the bank in improving its deposit mix.
Growth in financing portfolio was driven by the corporate segment, in addition to which, revival of retail financing has already been started. Underwriting quality will be tested as the size of financing activities increases. On the technology front, the bank has selected ‘iMAL’ to replace ‘Symbols’ as the core banking solution.
Investment portfolio was higher during the year, mainly led by increased exposure in GoP Ijarah Sukuks. As a result, liquidity profile of the bank was largely maintained. Earnings from capital markets have enhanced overall profitability in the on-going year.
The bank is in the process of finalizing capital enhancement plan and arranging necessary regulatory approvals. Meanwhile, Capital Adequacy Ratio at 41.8% at end-December 2011 provides considerable room for growth without placing any stress on the risk profile of the institution. Progress towards materialization of various business initiatives in the form of sustainable operational performance will continue to be tracked by JCR-VIS.
For more information, contact:
Mr. Javed Callea
Advisor
JCR-VIS Credit Rating Company Limited
Tel: +9221 35311861 (10 lines) (Ext: 501)
Fax: +9221 35311872-3
E mail: javed.callea@jcrvis.com.pk