ZTBL Receives Top Credit Ratings from VIS

Zarai Taraqiati Bank Limited (ZTBL) has been awarded top credit ratings of 'AAA/A-1+' by VIS Credit Rating Company Limited, indicating very low risk and excellent liquidity. These ratings are on par with the Government of Pakistan's debt, showcasing ZTBL's financial stability and reliability.

Owned by the Government of Pakistan and the State Bank of Pakistan, ZTBL benefits from strong sponsor support, playing a vital role in agricultural financing within Pakistan. Despite facing an increase in non-performing loans due to higher loan disbursements for development projects in 2023, ZTBL maintains a robust liquidity position with sufficient cash reserves and investments to meet its obligations.

In 2023, ZTBL's profitability surged, driven by increased interest income and successful recoveries from bad loans. Although operating expenses rose, the bank's efficiency ratio improved, and its capital adequacy exceeded regulatory requirements, reflecting a sound financial footing.

However, ZTBL faces regulatory risks associated with the adoption of IFRS 9 accounting standards. Nevertheless, its strong financial performance and government backing position ZTBL as a key player in the banking sector, ensuring stability and reliability for its customers and stakeholders.