Moody's Investors Service has placed the C- financial strength rating (FSR) of National Bank of Abu Dhabi on review for possible upgrade, reflecting the bank's consistently improving financial performance.
The current business strategy of the National Bank of Abu Dhabi is very dynamic with clearly defined targets, as set out in its profit-driven five-year plan. In particular, the strong management team has been able to consistently improve profitability and maintain adequate capitalisation and liquidity despite balance sheet fluctuations, Moody's says.
National Bank of Abu Dhabi's FSR could receive additional support from stable economic conditions in the United Arab Emirates (UAE) and high international commodity prices, particularly for oil, Moody's adds.
The review will focus on an analysis of the intrinsic financial strength of the bank, its co-operation with the government within the framework of its status as "national bank" and the influence of the operating environment on its activities.
Areas of special attention will include, but will not be limited to, financial performance, importance to the UAE banking system in general—and to Abu Dhabi in particular—asset quality, government-related business, loan diversification and funding.
Headquartered in Abu Dhabi, United Arab Emirates, National Bank of Abu Dhabi had total IAS consolidated assets of 32.25 billion Emirati dirhams ($8.78 billion) as of December 31, 2001. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
