The Pakistan Credit Rating Agency (Pacra) has maintained the long-term and short-term ratings of Jahangir Siddiqui Investment Bank Limited (JSIBL) at 'A+' (Single A Plus) and 'A1' (A One), respectively.
These ratings denote low expectation of credit risk emanating from strong capacity for timely payments of financial commitments. The ratings have been placed on 'rating watch' pending the outcome of the expected amalgamation with American Express Bank Limited (Pakistan Branches).
JSIBL ratings reflect its robust performance emanating from its continued success in optimising earnings from capital market operations. The volatility risk emanating from these operations is mitigated by the bank's strong capital structure, as well as the sound risk management techniques employed.
Jahangir Siddiqui Investment Bank Limited (JSIBL) commenced commercial operations in September 1993. Jahangir Siddiqui and Company Ltd (JSCL)--the principal shareholder with 62.41 percent stake in JSIBL--assumed control of the bank in September 1999.
Starting as a traditional securities firm, JSCL is now the main holding company of the Jahangir Siddiqui Group. With its considerably expanded equity and asset base, the company is embarked upon new initiatives, with a dynamic approach in identifying new growth opportunities with the proven ability to take quick but prudent investment decisions.
The present board of directors of the bank comprises seven members, majority of whom have been nominated by JSCL. Access to quality human resource, with the requisite skill sets and experience, is an important benefit derived from the bank's association with the JS Group.
JSIBL is expected to merge with American Express Bank in the near future. Consequently, the rating has been placed on 'rating watch'. The merged entity will be a commercial bank with an initial network of five branches. In the post-amalgamation scenario, the new entity is likely to face new challenges and far more intense competition.