JCR-VIS reaffirms rating of Term Finance Certificate-III issued by Standard Chartered Bank Limited

Banking and Finance

Karachi: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the rating assigned to the outstanding third TFC of Standard Chartered Bank (Pakistan) Limited (SCBPL) at ‘AAA’ (Triple A). Outlook on the ratings is ‘Stable’. The unsecured TFC was issued by the former Union Bank Limited and is subordinated to the claim of depositors.

Standard Chartered PLC holds 99% shares of SCBPL. Standard Chartered has rich experience of operating in emerging markets and exhibits strong financial health, as also reflected in its ‘A+’ rating assigned by an international rating agency. The instrument rating derives strength from SCBPL’s association with Standard Chartered. The bank’s future strategy entails capitalising on the group’s specialisation in developing markets by offering a wider suite of financial products and services to its clients.

The bank plans to continue expanding its lending operations; cognizant of the heightened risks in the economy lending strategy of the bank is expected to remain selective in all business segments. Focus on Islamic Banking operations has been enhanced with plans to gradually increase the share of revenues from the segment in total revenues of the bank.

Earnings of the bank have depicted an improving trend and the bank remains well capitalised. The bank enjoys strong franchise in the domestic market and has been able to cultivate a well-diversified, low-cost deposit base featuring a high proportion of current accounts. Liquidity profile has therefore remained strong.

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