Manama, April 6, 2015
Islamic International Rating Agency (IIRA) has assigned ratings of 'A/A1' (Single A / A One) to Dubai Islamic Bank (DIB) on the international scale. On the national scale, ratings have been assessed at AA-(ae)/A1+(ae) (Double AMinus / A One Plus). Outlook on the assigned ratings is 'Stable'.
Ratings are supported by DIB's strong franchise and retail market presence, ensuring steady access to cost effective funding. Presence of Dubai government as its strategic shareholder as well as the bank's systemic importance in the UAE market, and particularly within the Emirate of Dubai, is also a positive rating factor.
The bank has registered significant growth over the last two years, particularly evident in core business growth in 2014. This has been accompanied by a broad based revival in profitability, stemming from wider banking spreads and enhanced business volumes, as well as improved non fund based income.
The recent tier-1 capital issue in early 2015 has reinforced capital adequacy ratio to 18.5%, which had fallen at year-end 2014 given rapid growth in risk-weighted assets. The bank's capital base presently constitutes a healthy risk buffer and leaves significant room for growth. Moreover, asset quality indicators have continued to depict an improving trend, while greater portfolio diversification has been achieved in recent periods.
The fiduciary score has been assessed in the range of '76-80', which indicates strong fiduciary standards, wherein rights of various stakeholders are well defined and protected. The fiduciary score is an aggregation of scores assigned to its three sub-sections, namely Corporate and Shari'a Governance, and Asset Manager Quality.
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For further information on this rating announcement, please contact Mr. Moh'd Raza Lakhani at raza.lakhani@iirating.com or email at iira@iirating.com.
© Press Release 2015
