The Pakistan Credit Rating Agency (PACRA) has upgraded Soneri Bank’s Long-Term Entity Rating from AA- to AA, while reaffirming the Short-Term Rating at the highest level, A1+. The upgrade reflects a structurally strengthened liability franchise, sustained earnings momentum, and continued progress in trade finance.
Improved Deposit Mix and Low-Cost Funding
The bank’s deposit mix has improved steadily, with the CASA ratio strengthening over the past several years and current deposits growing well ahead of the overall base, particularly in newly opened branches. This low-cost funding base is described as relationship-anchored rather than rate-sensitive, evidenced by a stable and higher-than-historical spread.
Strong Profitability Growth
Profitability has improved across both funded and non-funded businesses, with net markup income and profit before tax recording strong multi-year growth driven by efficient deployment of funds and disciplined cost management. Fee and commission income has also nearly doubled over the period, with growth ranking among the stronger performers in the industry.
Trade Finance as Key Driver
Trade finance is a key growth driver, with foreign trade volumes more than doubling over the past five years. This has increased market share to the highest level to date, enabling the bank to cross a significant trade volume milestone, and positioned it amongst the leading banks in terms of trade growth, further reinforcing its position as a trusted trade finance partner.
Digital Banking and Branch Expansion
Digital banking activities have scaled up with transaction values and volumes rising steadily amid gradual customer migration toward digital channels alongside continued branch expansion. The bank has also continued expanding its branch network, marking the largest expansion phase in its history. Its Islamic Banking business has contributed meaningfully to this momentum through continued growth in assets, deposits and advances.
Asset Quality Strengthens
Asset quality has strengthened considerably, with the infection ratio falling to its lowest level in over a decade and improving the bank’s industry ranking, while both general and specific coverage ratios rose substantially, reinforcing loss-absorption capacity and balance sheet resilience.
Investment in Infrastructure
PACRA also acknowledged Soneri Bank’s continued investment in alternate delivery channels, payment solutions, and core banking infrastructure, reflecting its commitment to strengthening customer experience while remaining aligned with evolving industry trends.
Strategic Roadmap Ahead
Looking ahead, the bank has outlined a three-year strategic roadmap centered on digital adoption, sustainable growth, market expansion, and customer service, with targets including further branch expansion, growth in total assets and deposits, and continued scale-up in trade business volumes as a core pillar of future non-funded income.
