Karachi, JS Bank Limited's position in the competitive banking landscape of Pakistan has been positively affirmed by The Pakistan Credit Rating Agency Limited (PACRA). The bank's proactive strategies in both conventional and Islamic banking have positioned it favorably for future growth, especially as the industry shifts towards Islamic banking practices.

According to The Pakistan Credit Rating Agency Limited, JS Bank has seen notable growth in the conventional banking sector and has recently enhanced its presence in the Islamic banking sphere through a significant investment in BankIslami Pakistan Limited (BIPL). This strategic move positions the bank to benefit from the evolving trends in the banking industry, particularly the shift towards Islamic banking.

On a consolidated basis, JS Bank is projected to report a substantial increase in its customer deposit system share. On a standalone basis, the bank has streamlined its costs, leading to an increase in core profitability. This improvement stems from focused management efforts on optimizing its branch network and customer base. Additionally, efficient funding cost management and strategic asset deployment have positively impacted the bank's bottom line.

The latest financial figures presented by the management are promising. The bank’s credit portfolio has shown a decline, reflecting ongoing efforts to consolidate advances around quality lending. The investment portfolio primarily consists of government securities, ensuring stability and low risk. Interest income has seen a considerable increase, rising to PKR 64.5 billion in the first nine months of the calendar year 2022 (9MCY22), up from PKR 48.7 billion in the same period in 2021. Furthermore, the bank's foreign exchange income has also increased significantly, reaching PKR 3.7 billion in 9MCY23, compared to PKR 1.9 billion in 9MCY22.

Despite higher provisioning expenses, JS Bank's bottom line has increased substantially year-over-year, recording PKR 2.3 billion in 9MCY22, a significant increase from PKR 820 million. The bank's foray into the Islamic Banking Industry and its subsequent dividend income from BIPL are expected to further augment its overall profitability.

PACRA's rating hinges on JS Bank's ability to maintain its asset quality, uphold its share of advances and deposits in the banking sector, diversify its income streams, and build and sustain a cushion in its Capital Adequacy Ratio (CAR) congruent with its ratings.