Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has maintained its rating for JS Bank Limited's (JSBL) PKR 2.5 billion Perpetual Term Finance Certificates (PPTFC). This rating reflects JSBL's strengthened position following its majority acquisition of BankIslami Pakistan Limited, marking it as one of the country's rapidly expanding financial institutions.

Despite a challenging economic environment, JSBL has retained a 4% market share in customer deposits as of the nine-month period ending 2025, mirroring figures from the previous year. The bank has strategically leveraged its regional footprint and varied product offerings to stabilize its market position.

JSBL's digital platform, "Zindigi," has seen significant growth, with throughput rising to PKR 265 billion and deposits reaching PKR 6.8 billion by the end of the nine-month period. Download numbers also increased by 8% to 13.31 million, enhancing the bank's tech-savvy image.

However, the bank faces challenges with an increase in gross non-performing advances to PKR 23.3 billion, raising the infection ratio to 10.6%. The investment portfolio remains heavily weighted towards government securities, particularly floating-rate instruments.

The bank's deposit base grew to PKR 556 billion, indicating improved customer acquisition and retention. The equity base also saw an increase, recorded at PKR 46.4 billion, with the Capital Adequacy Ratio standing at 13.94%.

Net markup income remained stable at PKR 20.3 billion, while non-markup income improved to PKR 10.9 billion, driven by increased fee and commission income. However, non-markup expenses rose by 11% to PKR 22.0 billion, highlighting cost pressures.

A slight decline in profitability was noted, with figures dipping to PKR 2.6 billion, attributed to increased operating expenses and a decrease in foreign exchange income. PACRA emphasized the importance of maintaining asset quality, diversifying income streams, and adhering to a robust governance framework to sustain the bank's ratings.