Abu Dhabi - Mubasher: Fitch Ratings has affirmed the long-term issuer default rating (IDR) for Abu Dhabi Islamic Bank (ADIB), listed on the Abu Dhabi Securities Exchange (ADX), at 'A+' and viability rating (VR) at 'bb'.
The New York-based credit rating agency also affirmed ADIB’s short-term IDR at 'F1' and support rating (SR) at '1', according to a press release.
The bank’s support rating floor (SRF) has been also affirmed at 'A+', Fitch Ratings added.
“ADIB's IDRs, SR and SRF reflect an extremely high probability of support available to the bank from the UAE and Abu Dhabi authorities if needed,” the American rating agency said.
The bank has the SRF at the Abu Dhabi Domestic Systemically Important Banks' (D-SIB) 'A+' SRF and has a 5% share of total system assets.
ADIB’s VR signals “weak asset quality, low coverage of impaired financing, sizeable balance sheet concentrations, weak - albeit improved - core capitalisation and high related-party lending,” the release indicated.
The VR also reflects the bank’s solid franchise in the UAE, particularly in Islamic retail banking, as well as “strong profitability, sound liquidity, and stable funding.”
In April, ADIB revealed it logged a net profit of AED 600.3 million in the first quarter of 2019, up 1.7% year-on-year from AED 590.4 million.
The bank’s net revenue increased by 5.3% to AED 1.436.6 billion in Q1-19 from AED 1.363.9 billion in Q1-18.
In Q1-19, ADIB’s total assets stood at AED 124.6 billion, versus AED 124.1 billion at the end of 31 March 2018.
