Karachi: The Pakistan Credit Rating Agency Limited has maintained its rating for JS Bank Limited, reflecting its robust position following the acquisition of a majority stake in BankIslami Pakistan Limited. JS Bank, recognized as one of the nation's fastest-growing financial institutions, has sustained a market share of 4% in customer deposits, bolstered by the positive fundamentals of the Islamic banking sector.

JS Bank has made significant strides in enhancing its technological profile, with substantial investments in digital services. Its flagship digital platform, "Zindigi," recorded a 42% increase in throughput, reaching PKR 206 billion in 2024. Deposits grew to PKR 6.7 billion, while downloads rose 31% to 12.3 million.

The bank experienced growth in its gross performing advances, which increased to PKR 226.4 billion from PKR 197.6 billion, primarily driven by the individual, financial, and textile sectors. However, asset quality challenges were noted, with non-performing advances climbing to PKR 21.3 billion from PKR 16.2 billion, raising the infection ratio to 8.6%.

JS Bank's deposit base expanded to PKR 525 billion, reflecting enhanced customer acquisition and retention efforts. The equity base also grew to PKR 43.7 billion, with the capital adequacy ratio standing at 13.24%.

Despite a 22% rise in net markup income to PKR 27.3 billion, JS Bank's non-markup income fell to PKR 11.3 billion due to a decline in foreign exchange earnings. Increased provisioning expenses contributed to a decrease in the bank's bottom line to PKR 2.8 billion.

The ratings hinge on maintaining asset quality, advancing its market share, diversifying income streams, and upholding a strong governance framework. These factors remain crucial for JS Bank's continued success and resilience amidst market volatility.