PACRA Upgrades Entity Ratings of First Women Bank Limited.

The ratings upgrade of First Women Bank Limited (“FWBL” or the “Bank”) reflects the change in the ownership structure of the bank, pursuant to the successful completion of the privatization process. The majority stake has been acquired by Abu Dhabi-based International Holding Company (“IHC” or the “Company”) through its subsidiary, Eve Holdings RSC Limited. The landmark transaction, completed in Apr’26, significantly repositions the Bank in the domestic market, transitioning it from a state-owned institution to a strategically backed financial entity. IHC is one of the region’s leading diversified investment conglomerates with interests across financial services, infrastructure, technology, healthcare, energy, and real estate with sovereign associations. The Company is currently in the process of acquiring the remaining 17.36% stake in the Bank. Furthermore, new Board of Directors has been constituted in Apr'26, the board elected Mr. Ali Rashed Al Rashedi as the new Chairperson of the Board of FWBL.
During CY25, the Bank's total equity remains largely intact at PKR 3.4bln (CY24: PKR 3.2bln), alongside the capital adequacy ratio standing at 29.27% (CY24: 31.71%), far surpassing the minimum requirement. Whereas, the Bank’s Minimum Capital Requirement (“MCR”), net of losses, was reported at PKR 2.3bln as of CY25 (CY24: PKR 2.2bln), remaining below the prescribed threshold during CY25. As per management, the new sponsors have committed to phased equity injections over a five-year period in line with the agreed roadmap to achieve compliance with the standard regulatory Minimum Capital Requirement (MCR). The planned capital support is expected to strengthen the Company’s capitalization and facilitate compliance with regulatory requirements.
At the end of CY25, asset quality challenges persisted; however, the associated risk remained adequately mitigated through strong provisioning buffers. Advances remained broadly stable, while non-performing loans continued to comprise predominantly legacy problem exposures inherited from prior periods. The infection ratio also remained intact, primarily attributable to legacy non-performing exposures inherited from the Bank’s state-owned tenure. The funding profile remained granular and cost-efficient, underpinned by a healthy CASA mix dominated by current account deposits. During CY25, the Bank’s profitability profile improved meaningfully, with net mark-up income increasing to PKR 1.8bln (CY24: PKR 1.5bln), supported by lower funding costs and improved balance sheet dynamics. Consequently, profit after tax strengthened to PKR 168mln (CY24: PKR 79mln), aided by recovery in core earnings and reversal of credit loss allowances.
Going forward, successful execution of the shareholders’ strategic vision will remain a key driver of the Bank’s future growth and rating trajectory. This includes strengthening FWBL’s capital base, expanding its branch network, modernizing the Bank’s technological infrastructure through digital integration and rebranding initiatives, and investing in human capital development. Equally important will be the enhancement of the Bank’s management depth through the induction of experienced professionals and the timely filling of key management positions to strengthen institutional capacity, governance, and execution capabilities. These initiatives are expected to further reinforce the Bank’s financial profile, operational resilience, and long-term sustainability.

About the Entity
FWBL was established in 1989, focuses on catering to women at all levels of economic activity, micro, SME, and corporate. International Holding Company, through its subsidiary Eve Holdings RSC Limited, acquired an 82.64% majority stake in the Bank from the Government of Pakistan. The rest of the shareholding comprises four five large banks (ABL, UBL, HBL, NBP and MCB). Previously, the Board was chaired by Mr. Najeeb Agrawalla; however, following the reconstitution of the Board of Directors in Apr’26, the board elected Mr. Ali Rashed Al Rashedi as the new Chairperson of the board of FWBL. Mr. Farrukh Iqbal Khan was initially appointed by the Ministry of Finance (MoF) on Dec 30, 2019, as President & CEO of FWBL and he will be continuing as President & CEO of FWBL in the new setup.