Js Bank
| Credit Rating Report | on | | JS Bank | |
Submitted By: M. Jehangir Khan Abdul Mannan
Submitted To: Dr. Nawazish Mirza Dr. Ayesha Afzal Dec 2012 |
RATING RATIONALE
ASSESSMENT
| New | Previous | Entity | | | Long term | A+ | A | Short Term | A1 | A1 |
The rating shows a fine and sound financial performance of the bank emanating from increasing bank’s profitability and liquidity and the sound capital adequacy values. Also the growing network of bank with the increase technological up gradations are adding a lot to the sound operations of JS bank. Obviously with the growing number of branch network the bank seems to face certain risk in future but they need to cope with the challenges to be faced in near future. Effective utilization of funds and giving out quality loans and catering with the NPL changes must be the prime focus of the bank. Financial Data | PKR (mln) | | 2012 | 2011 | 2010 | Total Assets | 70,949 | 53,920 | 39,383 | Equity | 8,247 | 7,505 | 5,821 | Net Income | 742.5 | 361.6 | -407.5 | ROA % | 1.4% | 0.7% | -1.0% | ROE% | 12.0% | 4.8% | -7.0% | Equity/Total Assets % | 11.6% | 13.9% | 14.8% | SBP CAR | 15.4% | 16.1% | 17.6% |
We Assign A+ to long term ratings and A1 to short term ratings because the bank’s indicates strong capacity for timely repayment of financial commitments. This capacity is not significantly vulnerable to foreseeable events. The ratings are dependent upon the management control that is essential to deal with the certain risks in the market. Prudent control over the network including technological updates and managing the key business personnel’s would always be important for the banking decisions. As a bank on small scale, maintaining and improving the reputation and asset quality would always remain challenging for the bank. Performance of the bank is in term of profitability improved the main reason is it sizable growth, increase in total earning
Submitted By: M. Jehangir Khan Abdul Mannan
Submitted To: Dr. Nawazish Mirza Dr. Ayesha Afzal Dec 2012 |
RATING RATIONALE
ASSESSMENT
| New | Previous | Entity | | | Long term | A+ | A | Short Term | A1 | A1 |
The rating shows a fine and sound financial performance of the bank emanating from increasing bank’s profitability and liquidity and the sound capital adequacy values. Also the growing network of bank with the increase technological up gradations are adding a lot to the sound operations of JS bank. Obviously with the growing number of branch network the bank seems to face certain risk in future but they need to cope with the challenges to be faced in near future. Effective utilization of funds and giving out quality loans and catering with the NPL changes must be the prime focus of the bank. Financial Data | PKR (mln) | | 2012 | 2011 | 2010 | Total Assets | 70,949 | 53,920 | 39,383 | Equity | 8,247 | 7,505 | 5,821 | Net Income | 742.5 | 361.6 | -407.5 | ROA % | 1.4% | 0.7% | -1.0% | ROE% | 12.0% | 4.8% | -7.0% | Equity/Total Assets % | 11.6% | 13.9% | 14.8% | SBP CAR | 15.4% | 16.1% | 17.6% |
We Assign A+ to long term ratings and A1 to short term ratings because the bank’s indicates strong capacity for timely repayment of financial commitments. This capacity is not significantly vulnerable to foreseeable events. The ratings are dependent upon the management control that is essential to deal with the certain risks in the market. Prudent control over the network including technological updates and managing the key business personnel’s would always be important for the banking decisions. As a bank on small scale, maintaining and improving the reputation and asset quality would always remain challenging for the bank. Performance of the bank is in term of profitability improved the main reason is it sizable growth, increase in total earning