PACRA Assigns Initial Rating to Additional Tier 1 Capital TFC - The Bank of Punjab - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- September 05, 2022 (PPI-OT)

Following is the text of press release issued by The Pakistan Credit Rating Agency Limited (PACRA)

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The Bank of Punjab has built a franchise around its name, which itself is a reflection of strong parentage. The bank enjoys a respectable position in its peer universe, also reflected by its system share. The parentage of the bank has provided associated benefits to the institution. The areas of focus envision three phases (control, consolidation and growth), which help lead the bank from augmented control environment to growth arena. Customer focus and geographical diversification and expansion are the key elements.

The Bank grew its deposit base by 20.1% to stand at PKR 1,003bln - higher than the industry's growth where deposits remained tilted towards saving. During CY21, total net income of the bank displayed improvement primarily attributable to enhanced net markup income. Further, reversals of provisioning showed prudent asset management that augmented bank's YOY net profit to increase by 79%, highest profit surge in the banking industry.

Asset quality improved along with growth in advances. whereby the growth in risk assets will be covered through insurance and first loss guarantees wherever available...