The Pakistan Credit Rating Agency Limited (PACRA) has upgraded the long-term rating of Soneri Bank Limited’s (PSX: SNBL) Tier 1 Term Finance Certificate (TFC) to ‘A+’ from ‘A’, maintaining a stable outlook on the instrument . This positive rating action underscores the bank’s structurally strengthened liability franchise, sustained earnings momentum, and significant progress in its trade finance operations . The upgrade follows a period of robust financial performance and strategic expansion for the bank, highlighting its enhanced creditworthiness and resilience in the competitive banking sector.
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The upgrade is anchored in a notable improvement in Soneri Bank’s deposit mix, with its Current and Savings Account (CASA) ratio strengthening and current deposits growing considerably, particularly from new branches. This low-cost funding base, described by PACRA as relationship-anchored rather than rate-sensitive, has supported a stable and improved spread. Profitability has seen a healthy uptick, with net markup income and profit before tax posting strong multi-year growth, driven by efficient fund deployment and stringent cost management, while fee and commission income nearly doubled, ranking among the industry’s best performers .
A key driver of the bank’s success has been its trade finance operations, which have emerged as a notable growth engine. With foreign trade volumes more than doubling over the past five years, the bank has achieved its highest-ever market share and crossed a landmark trade volume milestone, placing it third among major banks in terms of trade growth rate . This success is complemented by meaningful scale-up in digital banking activities, a continued pace in branch network expansion, and a growing contribution from its Islamic banking operations, which together reinforce a forward-looking and diversified business model .
Asset quality has also strengthened considerably, with the infection ratio falling to its lowest level in over a decade and improving the bank’s industry ranking. Both general and specific coverage ratios rose substantially, reinforcing the bank’s loss-absorption capacity and balance sheet resilience . Looking ahead, Soneri Bank has outlined a three-year strategic roadmap centered on digital adoption, sustainable growth, and market expansion, with targets for further branch growth and continued scale-up in trade business volumes, positioning the bank for sustained future success .
