Pakistan Credit Rating Agency (PACRA) has assigned Mashreq Bank Pakistan Limited (MBPL) an initial long-term entity rating of AA and a short-term rating of A1, with a stable outlook, underscoring the bank’s strong capital position, sponsor backing, and advanced digital infrastructure.
The ratings reflect MBPL’s status as a wholly owned subsidiary of Mashreq Bank P.S.C., UAE, one of the oldest and most resilient banking groups in the Middle East. With operations across 14 international markets, the Parent Bank brings strong strategic oversight, cutting-edge technology platforms, and expertise in digital banking, providing the foundation for MBPL’s long-term growth and stability. The Parent Bank maintains robust equity of approximately Rs3 trillion and international credit ratings of A (Fitch), A (S&P), and A3 (Moody’s).
Launched in 2023 under Mashreq Bank P.S.C.’s global expansion plan, MBPL began as a digital retail bank in Pakistan, completing key regulatory milestones including the State Bank of Pakistan’s No Objection Certificate in January 2023, In-Principle Approval in September 2023, and a restricted Digital Retail Banking license in December 2024 for pilot operations. Following successful pilot operations and compliance with regulatory requirements, MBPL achieved scheduled bank status on September 15, 2025, enabling full-scale digital banking operations.
MBPL operates two primary digital platforms: Mashreq NEO and Mashreq NEOBiz. Mashreq NEO, already live, offers individual customers a range of services including digital accounts, high-yield savings, current accounts, and NRP accounts. Mashreq NEOBiz, set to launch soon, will become Pakistan’s first fully digital banking solution for entrepreneurs and business owners, providing integrated, secure financial services on a single platform.
The bank’s technology infrastructure is powered by Oracle FLEXCUBE, complemented by AI-driven risk management, cybersecurity frameworks, and operational resilience. MBPL is initially focused on deposit mobilisation through customer-centric products, including Pakistan’s first Shariah-compliant, profit-bearing current account with returns up to 5%, alongside Islamic savings and competitive conventional accounts. Lending operations will commence once a stable deposit base is established, and credit cards are planned for early 2027.
As of September 2025, MBPL’s share capital stood at Rs9.4 billion, with equity of Rs2.4 billion after accumulated losses. The bank’s investment portfolio, consisting entirely of government securities, amounted to Rs6.5 billion, with market risk managed through sensitivity-based limits. Periodic capital injections from the Parent Bank will continue to support MBPL’s growth.
PACRA highlighted that MBPL’s credit profile is strongly underpinned by the financial strength, digital expertise, and continued support of Mashreq Bank P.S.C., particularly during its early growth phase, reflecting confidence in the bank’s governance, strategic direction, and operational resilience.
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