The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short-term entity ratings of MCB Bank Limited (MCB) at "AAA" (Triple A) and "A1+" (A One Plus). The ratings denote the lowest expectation of credit risk emanating from an exceptionally strong capacity for timely payment of financial commitments.
The ratings take note of MCB's exceptionally strong financial profile, reflected in solid capitalisation (CAR: 20 percent - the highest in peer universe), sound liquidity, and diversified deposit base. This has been enabled by the bank's able parentage, wherein a diverse mix of sponsors - mainly led by Nishat Group - has been providing an effective oversight. The bank intends to inculcate a result oriented culture, whereby design of its strategy and systems should ensure sustainability in the business philosophy.
The ratings factor in MCB's strong market positioning, supported by its well established brand name and substantial out reach. This helped in maintaining a sizeable low cost deposit base as compared to its peers. The bank continues with its current strategy of lending to premier corporates with sustained focus on government exposure. The bank has established an Islamic Banking subsidiary, which will operationalize subject to regulatory approval. The ratings are dependent on the bank's ability to hold its existing position in the banking sector. At the same time, upholding strong governance practices and strengthening human resource would be vital.-PR
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