Lahore: The Pakistan Credit Rating Agency Limited has maintained the long-term rating of The Bank of Punjab at AA-, with a stable outlook, in its latest review of the bank’s Additional Tier 1 Capital Term Finance Certificates. The ratings, which reflect the bank’s robust support from its strong parentage, remain unchanged from the previous assessment.

According to a statement by The Pakistan Credit Rating Agency Limited, The Bank of Punjab continues to leverage its established franchise to navigate challenging market conditions and access profitable segments. As of September 2024, the bank's deposit base expanded to PKR 1,574 billion, largely driven by an increase in savings deposits. However, the bank's market share remained steady at approximately 5%.

The bank's gross advances witnessed a 20% decline in the first nine months of 2024, leading to a reduction in the Advances-to-Deposit Ratio to 39.9%. Despite this, the bank's investment portfolio grew significantly, largely comprising government securities, which are expected to bolster future profitability. The Profit After Tax for the period reached PKR 14.1 billion, up from PKR 8.9 billion during the same period last year.

Under its current management, The Bank of Punjab is focusing on strategic initiatives to diversify its revenue streams, targeting small and medium-sized enterprises, the retail segment, and trade finance. Additionally, plans are underway to expand its global footprint through the establishment of offshore entities.

The bank's Capital Adequacy Ratio improved from 18.4% to 20.2% by September 2024, supported by the issuance of Additional Tier-1 and Tier-II bonds and retained earnings.