Manama – Islamic International Rating Agency (IIRA) has reaffirmed ratings on Jordan Islamic Bank (“JIB” or “the bank”) with the national scale ratings at A+(jo)/ A1(jo) (Single A Plus / A One). At the same time, on the international scale, both foreign and local currency ratings have been reaffirmed at BB+/A3 (Double B Plus / A Three) and at BBB-/A3 (Triple B Minus / A Three), respectively. Further, IIRA has maintained the outlook on the assigned ratings at stable.
JIB is the largest Islamic bank in the Hashemite Kingdom of Jordan (“Jordan” or “the country”) and positioned as a prominent market player in the country’s overall banking sector. The current ratings factor in the persisting macroeconomic and regional challenges in Jordan that is gradually leading to a systemic slowdown in the country’s banking sector. While JIB has outpaced the industry in terms of overall asset and deposits growth, relative slowdown has been witnessed in HY2017, reflective of general risk aversion.
On the other hand, the bank’s capitalization remains strong supported by sufficient internal capital generation that provides adequate cushion for loss absorption under the existing risk conditions. Profitability of the bank also remains sound with key indicators being superior compared to industry aggregates. Further expansion in JIB’s delivery network is envisaged in the ongoing year, with simultaneous implementation of cost efficiency measures.
Liquid reserves are sizable with metrics well exceeding the legal requirements. In addition to cost implications, the bank’s funding base continues to derive benefit from its strong retail footprint.
For further information on this rating announcement, please contact us via e-mail at iira@iirating.com.
© Press Release 2017
