Tameer Bank maintains A plus rating
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.