Press Release

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

Karachi, June 30, 2009: 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’.

Dubai Islamic Bank Pakistan Limited (DIBPL) is a wholly owned subsidiary of Dubai Islamic Bank (DIB) and enjoys technical support from its parent. Reaffirmation of the rating incorporates injection of Rs. 892m of capital by the parent bank during FY08, increasing equity to Rs. 5.07b, thus meeting the minimum capital requirement applicable by year-end. After tax losses registered in 2008, though lower than prior years, increased accumulated losses of the bank to Rs. 962.5m. DIBPL has however been profitable since the last quarter of the previous year and FY2009 is expected to be the bank’s first fully profitable year. Profitability trends will continue to be monitored closely by JCR-VIS. Liquidity profile of the bank is adequate, although the deposit base, while growing, features concentration.

With secured consumer products comprising a considerable part of the total portfolio, spreads have remained very favorable. Information systems are also strong and collection processes streamlined. The bank’s delinquency rates are therefore markedly better vis-à-vis other market players in the consumer segment. However, the customer base is still limited and further growth in this segment may entail some risk. Employee turnover was prominent in FY08 and focus on this front will further strengthen the institution.

For further information on this rating announcement, please contact the Mr. Safdar Kazi ( / Ext: 501) or Ms. Sabeen Saleem ( / Ext: 510) at 5311861-70 or fax to 5311872-3.

Faheem Ahmad
President & CEO

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 2009 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