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

Lahore -- July 01, 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 reflect improved risk profile of Bank of Punjab (BoP) with an appreciable enhancement in profitability and asset quality over the last few years which supplemented the equity base. During CY19, the bank has recorded commendable uptick in revenue base - interest earned. Largely attributable to hike in key policy rate as advances witnessed marginal growth slightly improved non-mark up income supplemented the profitability. Hence, a rise was witnessed in asset yield. There is significant dilution in the bank's net interest and operating margins during 1QCY20.

Growth in advances was subdued when compared with the medium industry average growth of 3.7%. Hike in NPLs led to net provisioning expense being recorded; maintaining asset quality intact remains essential. The Bank grew its customers deposit base higher than the sector's growth, with particular importance to saving deposit.

The concentration of government and public sector deposits remain high. The bank's Capital Adequacy Ratio (CAR) clocked in at 14.8% as at end-Dec19...