Rating agency Capital Intelligence (CI) has raised the financial strength rating of Abu Dhabi Islamic Bank (ADIB) to A- from BBB+. The foreign currency ratings were affirmed at A- for long-term and A2 for short-term and the support rating at 3. Outlooks remains Stable for all the ratings.
ADIB is 10 percent owned by Abu Dhabi Investment Authority (ADIA) and members of the ruling family and other prominent private shareholders own a further 29 percent of the bank. ADIB’s balance sheet is characterized by strong capitalization and high liquidity, as Murabaha placements with banks/financial institutions dominate the asset base.
The financing to other corporate sectors has however grown in recent years but the overall asset quality of the financing portfolio has remained solid. The retail franchise has strengthened and corporate and investment banking business has continued to grow. The bank has continued to perform well and has well defined strategies in place to strengthen the organization and maximize shareholder value, said CI. The product range has been widened and an enterprise wide risk framework is being adopted to strengthen risk management processes.
Despite an increasingly competitive market environment, the bank has continued to increase its market share and profits during the current year while maintaining an above average asset quality and liquidity. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
