Press Release

JCR-VIS reaffirms ‘A’ (Single A) rating of Dubai Islamic Bank Pakistan Ltd.
 

Karachi, June 30, 2008: JCR-VIS Credit Rating Company Limited has reaffirmed the medium to long term entity rating of Dubai Islamic Bank Pakistan Limited (DIBP) at ‘A’ (Single A) and short-term rating at ‘A-2’ (A-Two). The outlook on the ratings remains ‘Stable’.

The reaffirmation takes into account the continued support of Dubai Islamic Bank to DIBP, being its wholly owned subsidiary. The sponsors are considering offloading a portion of their equity in DIBP through an Initial Public Offering (IPO) by March 2009. The bank has a paid-up capital of Rs. 5.13b as of December 31, 2007, which is proposed to be increased to Rs. 6b by the end of FY2008 through a further equity injection by end of the current year.

Over the past year, the bank posted a net loss of Rs. 369.2m during FY2007, which increased accumulated losses to Rs. 780.7m. The management expects the bank to breakeven during FY2008, while FY2009 is projected to be the first profitable year. Profitability trends will continue to be monitored by JCR-VIS on an ongoing basis.

The bank offers a range of corporate and consumer banking services, and asset quality indicators have so far remained sound. However, increasing interest rates and inflationary pressures in the economy have increased credit risk above current levels, across the banking sector.

For further information on this rating announcement, please contact the Mr. Safdar Kazi or Ms. Sabeen Saleem at 5311861 or fax to 5311873.


Faheem Ahmad
President & CEO

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Information herein was obtained from sources believed to be accurate and reliable; however, JCR-VIS Credit Rating Company Limited (JCR-VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. JCR-VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. JCR-VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings. JCR-VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2008 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

JCR-VIS Credit Rating Company Limited