Press Release

JCR-VIS Reaffirms Entity Ratings of Pak Oman Microfinance Bank Limited

Karachi, April 30, 2012: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the entity ratings of Pak Oman Microfinance Bank Limited (POMFB) at ‘BBB+/A-3’ (Triple B Plus/A-Three). Outlook on the assigned ratings is ‘Stable’.

Core business activities have remained limited with net loan portfolio comprising 13% of the asset base. The bank has projected modest growth in its loan portfolio in the coming years. Underwriting quality will be tested with greater activity on the lending side. Existing quantum of NPLs is considered manageable in relation to loss absorption capacity of the bank.

Liquidity profile of the institution is strong with its resource base largely deployed in liquid avenues. Income from investments has remained the primary source of revenues. Given the limited internal capital generation, external equity injection will be required to meet the enhanced minimum capital requirement. JCR-VIS has been given to understand that sponsors of the bank are committed to injecting additional equity as and when required to meet minimum capital requirement in the coming years.

Development of core banking system has witnessed delays on account of lack of specialized resource for this function. The timeline for its implementation has now been extended to end-June 2012. Strengthening of control mechanisms and human resources along with timely implementation of the core banking system are essential for future growth.

For further information on this rating announcement, please contact the undersigned (Ext: 408) or Ms. Sobia Maqbool, CFA (Ext: 506) at 35311861-70 or fax to 35311873.

Jamal Abbas Zaidi
Deputy 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 2012 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