Tameer Bank main­tains A plus rat­ing

The Pak Banker - - FRONT PAGE -

Tameer Mi­cro­fi­nance Bank has main­tained its long-term and short-term rat­ings of "A+" (Sin­gle A plus) and "A1" (A One), re­spec­tively by Pak­istan Credit Rat­ing Agency (PACRA)

Th­ese rat­ings de­note a low ex­pec­ta­tion of credit risk em­a­nat­ing from a strong ca­pac­ity for timely pay­ment of fi­nan­cial com­mit­ments.

Te­lenor Group, through Te­lenor Pak­istan has 51pc share­hold­ing in Tameer Bank. It has en­tered into a Share Pur­chase Agree­ment with other share­hold­ers (49%) of Tameer Bank in Nov15 to ac­quire their stake.

The trans­ac­tion is in the process of rel­e­vant reg­u­la­tory ap­provals. Con­sid­er­ing this de­vel­op­ment, PACRA has placed En­tity Rat­ings of Tameer Bank on Rat­ing Watch. Tameer Bank's rat­ings re­flect its strong busi­ness pro­file em­a­nat­ing from grow­ing de­posit base and di­ver­si­fied rev­enue stream.

The bank has been suc­cess­ful in mo­bi­liz­ing low cost de­posits, par­tic­u­larly sup­ported by its branch­less bank­ing (BB) op­er­a­tions, yield­ing healthy im­prove­ment in spreads.

De­spite grad­ual growth in un­se­cured loan port­fo­lio, as­set qual­ity re­mains ro­bust - a re­sult of su­pe­rior con­trol frame­work. The bank's fi­nan­cial pro­file re­mained strong. The bank main­tains its lead­ing po­si­tion in BB op­er­a­tions.

Al­though it is likely to keep good share in in­creas­ing BB vol­umes, mar­ket share may wane as a re­sult of in­creas­ing com­pe­ti­tion. Nev­er­the­less, earn­ings from BB add strength to the over­all per­for­mance. The rat­ings in­cor­po­rate the bank's as­so­ci­a­tion with a well-re­puted and fi­nan­cially sound tele­com group - Te­lenor. The rat­ings will re­main on Rat­ing Watch un­til the fi­nal­iza­tion of pro­posed ac­qui­si­tion. On com­ple­tion of the trans­ac­tion, the en­tity rat­ings of Tameer Bank would be up­dated af­ter re­view­ing the im­pact of the ac­qui­si­tion and en­su­ing busi­ness plan. Tameer Bank com­menced op­er­a­tions in Septem­ber 2005 and cur­rently op­er­ates with a net­work of 66 branches with head of­fice in Karachi.

By end of third quar­ter of 2015, the bank's de­posits grew by 24% to Rs 15 bil­lion and re­ported a net in­come of Rs 587 mil­lion. The bank en­joys syn­er­gies with Te­lenor Pak­istan for its branch­less bank­ing plat­form - Easy­paisa.

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