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Moody's upgrades ADIB’s Baseline Credit Assessment

Moody's upgrades ADIB’s Baseline Credit Assessment
3 Apr 2024 17:47


Abu Dhabi Islamic Bank (ADIB) received an upgrade to its Baseline Credit Assessment (BCA) from Moody's as the ratings agency affirmed ADIB’s credit ratings.

This indicates continued stability and improvement in the bank's financial health.

This upgrade in ADIB's BCA is attributed to the bank's improved profitability, driven by higher margins and diversified revenue streams.

The bank recorded historical high net profits last year, with a notable increase in net income to tangible assets.

Moreover, ADIB's capitalisation levels have strengthened, and its reliance on stable, low-cost current and savings accounts deposits was a key factor in maintaining financial resilience.

The bank's local and foreign currency long-term issuer ratings have been affirmed at A2, with short-term issuer ratings maintained at Prime-1.

Furthermore, Moody's has upgraded the bank's BCA and Adjusted BCA to baa3 from ba1.

The outlook on the long-term issuer ratings remains stable.

The affirmation of ADIB's ratings reflects Moody's recognition of the bank's significant role within the local banking sector, and the government's consistent support for banks during challenging economic periods.

Acting Group Chief Executive Officer at ADIB, Mohamed Abdelbary, said, “Moody's affirmation of our ratings and the upgrade to our Baseline Credit Assessment underscores the robust financial position and resilience of ADIB. This recognition highlights our strong capital base and unwavering commitment to navigate dynamic market landscapes. ADIB's leadership in the Islamic finance sector is a result of our dedication to providing innovative Sharia-compliant banking solutions and superior financial services.”

ADIB achieved record-breaking performance in 2023, with significant growth across all its businesses. The market share expanded, while customer finance and income increased.

Enhancing its digital presence, the bank saw a rise in actively digital customers through improvements to its mobile app.

Moreover, in line with sustainability goals, ADIB strengthened its ESG strategy and governance framework to drive its sustainable banking agenda for the next three years, underscoring its dedication to growth, performance, and innovation.

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