Press Release

JCR-VIS Reaffirms Entity Ratings of First Credit and Investment Bank Limited

Karachi, December 30, 2015: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the entity ratings of First Credit and Investment Bank Limited (FCIBL) at ‘A-/A-2’ (Single A Minus/A-Two). Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on December 24, 2014.

The ratings incorporate strong sponsor backing with National Bank of Pakistan (NBP) and Water and Power Development Authority (WAPDA), each having a stake of 30.8% in the institution; more than one-third of interest is held by a third party. At end-September 2015, the company’s reported equity of Rs. 673.3m, which was short of the minimum capital requirement by Rs. 76.7m. Historically, profitability of the bank has remained under stress on account of sizeable non-earning assets and incremental provisioning & non-accrual of income against non-performing exposures. In 2015, bottom line of the bank depicted an increase on the back of higher capital gains on investments and return on TDRs.

Operational activities at FCIBL have remained subdued and there has been a reduction in asset base of the bank. Investments represent more than half of the resource base of the bank. While additions have been made in investments, overall portfolio has declined on account of principal repayment and provisioning against non-performing exposures. Management anticipates building its financing portfolio in the coming years. Asset quality indicators will continue to be monitored in this regard. Borrowings have also been scaled back and debt leverage of the institution is around 1(x). Liquidity position of the bank is considered comfortable with liquid assets over 100% in relation to total borrowings.

For further information on this rating announcement, please contact the undersigned (Ext: 516) or Mr. Mohammad Khalid Ali (Ext: 508) at 021-35311861-71 or fax to 021-35311872-3.

Jamal Abbas Zaidi

Applicable Rating Criteria: Non-Bank Financial Companies (March 2005)

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 2015 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