Press Release

VIS Reaffirms Corporate Governance Rating of Allied Bank Limited at CGR-9+
 

Karachi, April 02, 2020: VIS Credit Rating Company Limited (VIS) has reaffirmed the Corporate Governance Rating of Allied Bank Limited (ABL) at “CGR-9+”. The rating signifies very high level of corporate governance. The previous rating action was announced on February 11, 2019.

The corporate governance ratings are based on evaluation of key governance areas of the rated institution, including regulatory compliance, ownership structure, composition and operations of the Board of directors and executive management, self-regulation, financial transparency, and relationship with the stakeholders. The assigned rating take into account a well-established corporate governance framework at ABL, which is supplemented by effectively functioning Board and Management Committees comprising seasoned professionals. No reconstitution of the Board and Board Committees was observed during the period under review. Overall attendance record of all committee meetings was satisfactory with comprehensive discussion on various aspects of the bank, demonstrating high-engagement of the Board members. The minutes of these committee meetings are considered comprehensive with follow up in place on actionable items.

Overall control and risk management environment is underpinned by the implementation of a comprehensive Control Review & Testing Framework and Risk Assessment & Management System. A dedicated Compliance Committee was formed during the year which is responsible for promoting high compliance culture and reporting to the Board on effectiveness of compliance risk management. The Bank further strengthened its information technology infrastructure, including systems, networks, applications and robust data centers underpinned by Big Data, AI and Robotic Process Automation to ensure seamless banking services and enhance control environment. In pursuit of the Bank’s vision to provide innovative digital banking experience to its customers, various solutions have been introduced through myABL app.

A few changes were witnessed at the senior management level, including appointment of new Chief Financial Officer. Stability in the management team is considered essential from a rating perspective. Clear reporting lines are defined in the organogram that was updated in accordance with the Bank-wide rationalization and resource optimization exercise that was conducted during FY19. The Bank makes sufficient and timely financial and qualitative disclosures in the public domain digitally through its official website. Annual reports are fairly descriptive and contain comprehensive disclosures. The institution maintains healthy stakeholder relations and actively engages in social and welfare causes.

For further information on this rating announcement, please contact Syed Fahim Haider at 042-35723411-13 (Ext: 8006) or the undersigned at 021-35311861-70 (Ext. 201) or email at info@vis.com.pk



Faryal Ahmad Faheem
Deputy CEO

Applicable Rating Criteria: Corporate Governance Rating (August 2017)

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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 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 2020 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

VIS Credit Rating Company Limited