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 stronger liability franchise, sustained earnings growth, and continued progress in trade finance.
Deposit Franchise Strengthens
The bank’s deposit mix has improved steadily over recent years. PACRA noted that the CASA ratio has strengthened consistently, while current deposits have grown significantly faster than the overall deposit base, particularly in newly opened branches.
The agency described Soneri Bank’s low-cost funding base as relationship-anchored rather than rate-sensitive, supported by a stable and higher-than-historical spread.
Profitability Shows Strong Momentum
Profitability has improved across both funded and non-funded businesses.
According to PACRA, net markup income and profit before tax have recorded 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 banking industry.
Digital Banking and Technology Investments
PACRA acknowledged Soneri Bank’s continued investment in alternate delivery channels, payment solutions, and core banking infrastructure.
These investments reflect the bank’s commitment to improving customer experience while staying aligned with evolving industry trends and increasing digital adoption.
Trade Finance Emerges as Key Growth Driver
Trade finance has become a major contributor to the bank’s expansion strategy.
Foreign trade volumes have more than doubled over the past five years, enabling Soneri Bank to achieve its highest market share to date and cross a significant trade volume milestone.
PACRA noted that this performance has positioned the bank among the industry’s leading institutions in terms of trade growth, further reinforcing its role as a trusted trade finance partner.
Asset Quality Improves Significantly
The bank’s asset quality has strengthened considerably.
The infection ratio has fallen to its lowest level in more than a decade, improving Soneri Bank’s industry ranking. At the same time, both general and specific coverage ratios have increased substantially, enhancing loss-absorption capacity and overall balance sheet resilience.
Branch Expansion and Islamic Banking Growth
Soneri Bank has continued expanding its branch network and is currently undergoing the largest expansion phase in its history.
The bank’s Islamic Banking business has also contributed meaningfully to growth through continued increases in assets, deposits, and advances.
Three-Year Strategic Roadmap
Looking ahead, Soneri Bank has outlined a three-year strategic roadmap focused on:
- Digital adoption
- Sustainable growth
- Market expansion
- Enhanced customer service
The strategy includes plans for further branch expansion, growth in total assets and deposits, and continued scaling of trade business volumes as a core pillar of future non-funded income.