PACRA Maintains Entity Ratings of Mobilink Microfinance Bank Limited - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- April 30, 2020 (PPI-OT)

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

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The ratings take comfort from the bank's association with a leading global telecom group - Veon (formerly VimpelCom) - and with Pakistan's largest cellular operator - Jazz (formerly Mobilink). Sponsor's commitment to the bank is witnessed in the form of both technical collaboration and financial support. Ensuing synergies have strengthened the bank's penetration in target markets. Leveraging on the sponsors' network and brand name - JazzCash, branchless banking domain is taking on sanguine growth and is expanding through platform of Mobile-wallet accounts.

The bank's current strategy is pivoted around capitalizing on its digital banking base having strong support from its super-agent cellular operator. The management's confidence lies in keeping this segment's margins sustained and bring it at the forefront of mobile banking services, amidst rising competition. The bank held a market share of ~5% in the microfinance industry's Gross loan portfolio and ~11% in the total deposits as at End-Dec'19. Overall asset quality is healthier compared to peers. The bank's business model is directed towards fostering core and branchless banking simultaneously.

Granular small ticket size deposits in the BB domain, is growing, which adds benefit to performance indicators. The ratings take comfort on the financial risk profile depicted by healthy net...