...Fitch Ratings has upgraded Pan Asia Banking Corporation Limited s (PABC) rating to BBB-(lka) from BB+(lka) , recognising the improvement in profitability, relative improvements in capitalisation ratios, and asset quality. The rating is constrained, however, by the current level of solvency and by concentrations in the credit portfolio. PABC s profitability has steadily improved due to lower credit costs and expanding net interest margins. Margins increased to #.#% in FY## from #.#% in FY##. Consequently, the bank s ROA rose to #.#% in FY##, and is higher than the national industry average. The loan book s growth was modest at ##.#% in FY## vis- -vis the sector, which grew at ##.#%. The bank has a significant concentration to the export/import and wholesale/retail trading sectors, which together accounted for ##.#% of the loan book at FYE##. This exposes PABC to a so mewhat elevated level of risk, considering that the trading sector would be among the first to be...
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