The Pakistan Credit Rating Agency (Pacra) has maintained both the long-term and short-term ratings of Metropolitan Bank Limited at 'AA+' (Double A Plus) and 'A 1+' (A One Plus), respectively.
These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments. The ratings are placed on 'Rating Watch' pending the outcome of the expected merger with Habib Bank AG Zurich, Pakistan branches.
The ratings reflect MBL's outstanding asset quality and consistently robust performance.
Meanwhile, the management's quest for product innovation and technological upgradation helps to maintain MBL's competitive edge in terms of service quality and operating efficiency. The ratings are also factors in the potential benefits emerging from the proposed amalgamation with HBZ, which would further strengthen the bank's competitive positioning.
MBL commenced its operations in 1992. The Chief Executive of the bank is a former Governor of the State Bank and also a former president of Habib Bank Limited, one of the largest banks in the country. MBL, with focus on trade financing, is also strengthening its retail banking. In order to augment revenues, the bank is seeking diversification in business volumes and income streams. By the end of 2006, Habib Bank AG Zurich Pakistan branches are proposed to be merged with and into MBL. Consequently, HBZ will become the major shareholder of the merged entity. The merging entity carries out the same activities as MBL, with the advantage of the backing of strong patent and world-class technologies.
This suggests that the merger will lend further strength to the relative positioning and brand value of the combined entity.
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