JCR-VIS reaffirms corporate governance rating of Allied Bank Limited at CGR-9

Karachi, December 04, 2015 (PPI-OT): JCR-VIS Credit Rating Company Limited has reaffirmed the corporate governance rating of Allied Bank Limited (ABL) at CGR-9, denoting ‘very high level of corporate governance’. This rating is based on a scale ranging from CGR-1 (lowest) to CGR-10 (highest). The previous rating action was announced on November 28, 2014.

The rating reflects presence of a sound corporate governance framework at ABL underpinned by strong regulatory compliance, financial transparency and management profile. With Government of Pakistan (GoP) divesting its stake, changes were witnessed in the shareholding pattern during 2014. Ibrahim Group (IG), through Ibrahim Fibers Limited and family members continues to remain the largest shareholder. Overall the Board comprises experienced personnel with diversified backgrounds. Board oversight is considered satisfactory with Board overseeing matters of both strategic nature and also monitoring the performance of the Bank.

Overall internal control environment at the Bank is considered satisfactory with systems, procedures and sufficient resources in place for all major control functions. A professional and experienced team manages the control functions. Presence of an integrated IT system also strengthens the internal control environment at ABL. Additional control measures have been implemented by audit and compliance departments. Senior management level changes, if any, have been filled by internal promotions highlighting the effectiveness of succession planning.

Changes in the organizational structure include the creation of a Chief Operating Officer (COO) position with all business groups reporting to the COO who in turn reports to the CEO. Moreover, a new group “Real Estate, Engineering and Infrastructure Development” was created. The HR department is involved in continuous development of the workforce. Disclosures in the annual report are adequate and provide investors and analysts with sufficient information to ascertain the existing performance of the Bank along with the future outlook.

For more information, contact:
Ms. Sobia Maqbool
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk