Lahore, June 27, 2019 (PPI-OT): MIB is a wholly owned subsidiary of MCB Bank Limited (MCB). MCB has long term rating of “AAA” reflecting its robust profile duly supplemented by its strong market position in local banking landscape, established brand equity, and sound financial profile. MIB’s standalone risk profile is improving. The management’s strategy is to focus primarily on high-rated, blue chip corporate clients. Meanwhile, undertaking new business lines including Micro, SME and Consumer financing are also on the horizon. MIB has set relatively high targets for deposit growth and plans to focus on maintaining its financing book quality. Technological implementation and setting governance structure were mile stones achieved by bank in the last year.
The thrust of the business plan is to achieve break-even. The bank added branches from parent company resulting in bank’s expanded outreach. Increase in advances book added from parent company; asset quality remained intact. Dilution in bank’s ADR may provide room for future growth. CASA remained largely same but cost structure of the bank is considered to be under stress. Going forward, monitoring of CAR while expanding lending portfolio and achieving sustainable profitability is essential. The ratings are dependent on bank’s ability to hold its risk profile, while maintaining its relative market position in the banking industry.
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