July 16, 2015 (LBO) – Sri Lanka’s Commercial Bank, Bangladesh accorded AAA long-term credit rating by Credit Rating Information and Services (CRISL), a statement said.
The full statement follows
The AAA (Triple A) long-term credit rating accorded to the Bangladesh operations of Commercial Bank PLC has been reaffirmed by Credit Rating Information and Services Ltd (CRISL) for the fifth consecutive year.
Triple A is the highest credit rating given to any financial institution in Bangladesh by CRISL.
The rating is based on the financial performance of Commercial Bank up to December 31, 2014and other qualitative and quantitative information relevant to the rating.
This includes the bank’s continuous maintenance of strong fundamentals in the area of capital adequacy, asset quality, financial and operating efficiency and risk management.
Commercial Bank’s Bangladesh operations, now comprising of 18 service points and 19 ATMs,were upgraded from AA +(Double A Plus) to AAA in July 2011.
This rating has remained unchanged since.Commercial Bank is the third largest foreign bank in Bangladesh.
Banks in the triple Acategory are adjudged to be of best quality, offer highest safety and have highest credit quality.
Risk factors are negligible and risk free, nearest to risk-free Government bonds and securities.
Changing economic circumstances are unlikely to have any serious impact on this category of banks.
“The success of our Bangladesh operation is a great source of inspiration, confidence and encouragement to us,” Commercial Bank’s Managing Director/CEO MrJeganDurairatnam said.
“Commercial Bank Bangladesh has won numerous awards in that country, and has been a solid representation of the values and strengths of the parent bank.
We have now ventured into Myanmar, and our experience in Bangladesh will be of value to the Myanmar team.”
For the purpose of the rating, CRISL has evaluated the financial performance of the Commercial Bank in terms of Return on Average Assets (ROAA), Return on Average Equity (ROAE) and Net Interest Margin (NIM). At end 2014, the net profit before tax and provisions of Commercial Bank Bangladesh stood at TK. 1,631millionwhile net profit after taxwas TK.947million.
Commercial Bank entered Bangladesh in July 2003 with the acquisition of the Bangladesh operations of Credit Agricole Indosuez (CAI), its first ever acquisition of a banking operation. The Bank has been honoured withthe ‘Best Corporate Performance’ Awardunder the Foreign Bank category for the past six years consecutivelyin Bangladesh by the Institute of Cost and Management Accountants of Bangladesh (ICMAB).