Press Release

JCR-VIS Upgrades Entity Ratings of Samba Bank Limited to A+/A-1 with Stable Outlook

Karachi, June 29, 2011: JCR-VIS Credit Rating Company Ltd has upgraded the entity ratings of Samba Bank Limited (Samba) to ‘A+/A-1’ (Single A Plus/ A - One). Outlook on the assigned ratings is ‘Stable’.

Having achieved break-even on quarterly basis since last quarter of 2010, CY11 is expected to be the first fully profitable year for the bank. Improvement in earning profile of the bank has been on account of growth in revenues, decline in funding cost and steps taken to contain administrative expenses. With increase in proportion of current accounts in the deposit mix, cost of deposits of the bank compares favorably both on a timeline basis and in terms of its relative standing among peer banks. Capital of the bank is considered strong at Rs. 7.95b as of March-end 2011. Minimum regulatory requirement of Rs. 8b for end-December 2011 is expected to be met through internal generation.

The management of the bank is focused on achieving its strategic objective and has consistently demonstrated a prudent approach, in the backdrop of weak macroeconomic fundamentals. Given recent efforts at institution building and sufficient capacity in the bank’s balance sheet to increase leverage, Samba is poised to grow in the coming years. The loan book currently comprises limited number of clients, though features good quality credits; moreover, net infection was also low at year-end 2010. Risk profile of the investment portfolio is considered sound as it primarily comprises short-term government securities. While deposit base of the bank depicts concentration, retail base has increased. Liquidity risk is deemed manageable as liquid assets in relation to total borrowings and deposits remained strong at end-CY10.

Ratings also derive strength from the support of sponsor - Samba Financial Group (SFG). SFG has an outstanding long-term rating of ‘A+’ (Single A Plus) from an international rating agency. In addition to deriving significant benefits in the area of information technology, risk management and policy formulation; timely injection of capital by SFG has facilitated Samba in improving its financial performance.

For further information on this rating announcement, please contact Ms. Sabeen Saleem, CFA (Ext: 510) or Mr. Jamal Abbas Zaidi (Ext: 408) at 35311861-70 or fax to 35311873.

Syed Ziauddin Ahmed

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 2011 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