Press Release

JCR-VIS Reaffirms Ratings of Samba Bank Limited at ‘A/A-1’

Karachi, June 29, 2009: JCR-VIS Credit Rating Company Ltd has reaffirmed the entity ratings of Samba Bank Limited (Samba) at ‘A/A-1’ (Single A / A- One). Outlook on the assigned ratings is ‘Stable’.

The ratings of Samba take into account the support emanating from its key sponsor – Samba Financial Group. In addition to equity support, Samba has benefited from its sponsor’s expertise in various aspects of banking operations, as reflected in ongoing improvement in technology and risk management infrastructure, strengthening of the policy framework and training of human resource personnel.

Although efforts to rationalize funding costs are beginning to post results, meaningful growth in low cost schemes and broad based funding access may take time to develop. JCR-VIS will continue to monitor the bank’s ability to develop access to a diversified funding mix, as new liability products currently in the pipeline, are introduced in the market.

General pressures in the macroeconomic environment have also hindered progress towards achieving other key milestones incorporated in the business strategy. While spreads have improved slightly, profitability has been impacted by further charge offs as well as some one-time costs of re-branding and system integration. Going forward, the bank also has plans to rationalize its overheads. Current capitalization levels allow significant room for growth and further injection is also on the anvil, to meet minimum capital requirements.

For further information on this rating announcement, please contact Ms. Sabeen Saleem (Ext: 510) or Ms. Sobia Maqbool (Ext: 506) at 5311861 - 5311870 or fax to 5311873.

Faheem Ahmad
President & CEO

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 2009 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