Karachi, VIS Credit Rating Company Limited has reaffirmed the entity ratings of Mobilink Microfinance Bank Limited (MMBL) at 'A/A-1', indicating good credit quality and a high certainty of timely payment, with an overall stable outlook. This rating reflects the bank’s strong liquidity, sound protection factors, and minor risk factors.

According to VIS Credit Rating Company Limited, the medium to long-term rating of 'A' suggests that the bank has adequate protection factors, although risk factors could vary with changes in the economy. The short-term rating of 'A-1' points to excellent liquidity factors backed by good fundamental protection factors. The reaffirmation of these ratings from the previous year highlights the bank's continued financial stability and effective risk management.

Mobilink Microfinance Bank, established in 2010, has grown significantly under the ownership of VEON Microfinance Holding B.V. and its association with Jazz, Pakistan’s largest cellular operator. The bank leverages this relationship to enhance its market presence and expand its services, particularly in branchless banking through JazzCash.

Looking forward, MMBL is focused on expanding its deposit base, especially through digital platforms, which supports cost-effective funding and efficiency in lending operations. While there are concerns regarding asset quality and loan portfolio trends, the bank’s strategy includes managing the rising cost of risk within its capacity, supported by robust earnings generation and strong liquidity and capital buffers.