Press Release

JCR-VIS reaffirms Entity Ratings of Khushhali Bank Limited

Karachi, November 12, 2012: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the medium to long term entity rating of Khushhali Bank Limited (KBL) at ‘A’ (Single A) and short term rating at ‘A-1’ (A-One) with a ‘Stable’ Outlook, upon conclusion of the acquisition process led by UBL (United Bank Limited). Previously, the ratings were placed under ‘Rating Watch-Developing’ status.

Subsequent to the change in shareholding structure, the Board of Directors has been reconstituted. With ownership now concentrated with the UBL led consortium, a coherent strategy is likely to be observed. The bank has already initiated loan recoveries through UBL’s Omni platform and further synergies may also emerge over time. Meanwhile, long association of the senior management team with considerable experience and professional expertise would help in steering the bank towards targeted business growth, going forward.

The deposit base of the bank expanded considerably during 9MFY12 and increase was manifested in saving and term deposits. The bank has successfully converted entire branch network to Full Service Banking platform with the conversion of additional 47 branches during the year which played a pivotal role in mobilizing fresh deposits. Net interest income of the bank witnessed increase in 9M12, mainly as a result of growth in loan book. Net profit is lower in this period, on account of provisioning, though considerable improvement has been noted during quarter ended September 2012.

For further information on this rating announcement, please contact Mr. Rashid Zahir at or Mr. Maimoon Rasheed at 042-36610681-84.

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited 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.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.VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings.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 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.

JCR-VIS Credit Rating Company Limited