TRIS Rating has affirmed the company rating of Land and Houses Bank Plc (LH BANK), a subsidiary owned (99.99 per cent) by LH Financial Group PLC (LHFG), at “A-” with “positive” outlook.
TRIS Rating also affirms the rating of LH BANK’s Basel III Tier 2 capital securities at “BBB”.
The “positive” outlook reflects LH BANK’s stronger capital position, future growth opportunities, and potential improvement in business profile, leveraging on the strategic alliance with CTBC Bank Co Ltd (CTBC Bank) from Taiwan.
The company rating reflects the improving prospects for profitability and strong asset quality.
However, the ratings are constrained by the bank’s modest franchise, concentrated sources of revenue, high credit concentration, and a weak, albeit improving, funding structure.