Lahore, June 27, 2019 (PPI-OT): Allied Bank Limited is one of the top five banks of the country in terms of its deposit share. The bank’s franchise, spread over a network of 1,345 branches, has enabled sustainable footprints into the country’s deposit base. The bank’s risk absorption capacity, as reflected in its sound equity base, has grown more than the market average over the years. This is supplemented by a significantly higher CAR (22.8% at Mar19), beyond the industry average.
The bank has adopted a multi-faceted approach to augment its relative standing in the market. Increased attention is being diverted towards deepening of current business relationships and an enduring emphasis has been laid on building trade business. The bank’s technology platform is a strength. This has facilitated fast and effective decision making while extending quality conventional and digital services to its customers. The related benefits would continue to unfold over the years. The ratings recognize the management’s concerted efforts in sustaining the sound asset quality, while expanding its advances portfolio.
The low infection ratio and high coverage ratio are considered positive. The continued strengthening in retail deposit market would enable further improvement in deposit granularity in terms of concentration as well as funding cost. The market share needs to be harnessed. At the same time, achieving efficiency in terms of utilization of its healthy CAR may help in further boosting ABL’s market share and profitability. The management’s ongoing concerted efforts towards enhancing diversification in its revenue stream, achieving reduction in overall concentration, higher penetration in retail deposits and continuous improvement in cost structure remain important.
For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com