Al Baraka’s Sudan unit gets ratings boost
MANAMA, January 12, 2016
Bahrain-based Islamic International Rating Agency (IIRA) has assigned national scale investment grade credit ratings of A- to Al Baraka Bank Sudan (ABBS), an Al Baraka Banking Group (ABG) majority-owned subsidiary in Sudan.
The outlook on the assigned rating is stable, said a statement.
The ratings had acknowledged ABBS strong asset growth and favourable diversified retail deposit base most of which comprise of current accounts, and its strong franchise and overall conservative business approach.
IIRA observed that ABBS maintains sizable liquid reserves, with solid liquidity and that asset quality indicators have improved and are better than the banking sector average.
The capital ratio of ABBS is strong and higher than the minimum required and the average of the banking industry in Sudan and scope exists for further growth.
The bank achieved a general improvement in profitability driven by consistent increase in gross revenue supported by low cost of deposit funding.
The rating has taken into account the various economic and financial challenges faced by banks in Sudan.
Adnan Ahmed Yousif, president and chief executive of ABG and chairman of ABBS, commented that the ratings are indeed a milestone for ABBS and represents an endorsement of its good performance despite the challenging conditions, in addition to meeting the high standards of sharia compliance and corporate governance. - TradeArabia News Service
