JCR-VIS Credit Rating Company Limited has upgraded the entity ratings of Habib Bank limited (HBL) to 'AA+/A-I+' (Double A+ /A-One Plus) with a 'Stable' outlook.
Rating derive significant strength from HBL's strong franchise value and its systemic importance to the local economy as the largest private sector bank, both in terms of deposits held by the bank and the size of branch network.
The bank has access to a low cost and diversified deposit base. Post privatisation, profitability indicators have improved continuously and with high profit retention, capitalisation of the bank stands significantly enhanced by the end of FY2006.
The corporate loan book has grown steadily over the last year, though growth in consumer portfolio was below target. Asset quality indicators in this segment require improvement and will be monitored by JCR- VIS.-PR
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