GIB gets stable outlook from Fitch
Manama, April 16, 2013
Fitch Ratings has affirmed Gulf International Bank's (GIB) long-term issuer default rating (IDR) at 'A' and viability rating (VR) at 'bbb-' and said its outlook on the long-term IDR was stable.
The agency said that ratings "reflect Fitch's view of an extremely high probability of institutional support from its majority shareholder, the Saudi government's Public Investment Fund which holds a 97.2 per cent stake."
Fitch also stated that the viability rating reflects GIB's improved financial metrics, particularly its strong liquidity and capital position, reported the Gulf Daily News, our sister publication.
Also, the bank has made good progress in restructuring and strengthening its risk profile over the past few years.
In Fitch's opinion, "GIB has significantly strengthened its funding profile, including raising stable customer deposits and improving the term structure of wholesale funding. The latter highlights the bank's ability to leverage its Saudi government ownership to source external funding when global liquidity conditions are tight."
Fitch views GIB's capitalisation as strong, with a Fitch core capital ratio of 18.1 per cent at end of last year.
"GIB's capital provides a good buffer for expansion or potential weaker asset quality as it ventures into new products and markets," it said.
"We regard this as an independent validation of the actions we have taken over the last four years to restructure the bank as well as our new business strategy," GIB chief executive Dr Yahya Alyahya said.
"The affirmation of the viability rating also reflects Fitch's assessment of GIB on a standalone basis without shareholder support and reflects GIB's fundamental financial strength and risk profile.
"The viability rating was upgraded last year and represented one of very few bank rating upgrades since the financial crisis of 2007/2008," he added.-TradeArabia News Service
Tags: Gulf International Bank |
More Finance & Capital Market Stories
- Bahrain firms plan IPOs
- Serbia wins $1bn Abu Dhabi loan
- Key equity banker resigns from Saudi Fransi
- DMCC to boost Islamic commodity trade with tie-ups
- IDB, KIA units to invest in Morocco
- First Gulf to set up $1bn sukuk in Malaysia
- Singapore’s UOB Bullion and Futures joins DGCX
- Infrastructure investment ‘key to growth’
- BKIC declares 30pc dividend
- StanChart profit falls 16pc in 2013
- Veteran Saudi banker to head AMF
- Dubai World prepays $284m to creditors
- EFG-Hermes sells Damas stake to Mannai
- Ultra rich number to grow 35pc in Mideast
- Saudi IPO market 'set for big year'
- RAK 'exploring' ceramics unit stake sale
- Bahrain Bourse wins key UK award
- Alba backs Euromoney forum
- URC bond rating upgraded to stable outlook
- GCC urged to set up onshore financial centres
- Consolidation push paying off for Bahrain banks
- Mubadala to focus more on US, Europe
- Six banks join plan for shared customer data register
- UAE economy grows 4pc in 2013
- Egypt foreign reserves up to $17.3bn
- StanChart opens second branch in Iraq
- Oil below $90 to hit GCC economies
- Payfort offers zero deposit scheme to SMEs
- In a first, NCB Capital names female CEO
- Du enters $1.17 billion financing deals