Manama, February 18, 2015

Islamic International Rating Agency (IIRA) has reaffirmed the ratings of Jordan Islamic Bank (JIB) on the national scale at A+/A1 (jo) (Single A plus/A One). Ratings of JIB on the international scale have also been reaffirmed with the foreign currency rating at 'BB+/A3' (Double B Plus/A Three) and the local currency rating at 'BBB-/A3' (Triple B Minus /A Three). Outlook on the ratings is 'Stable'.

Ratings are supported by JIB's strong franchise and retail presence. As the third largest bank in Jordan, it commands a market share in excess of 11%. The bank's penetration in the local market is a positive rating factor and has ensured a steady supply of cost effective liquidity over time. JIB has remained consistently profitable in its operations and a high retention ratio has enabled continued growth in risk assets through internal capital generation. Capital adequacy at 18.5% and profitability trends indicate room for growth in line with the bank's historical medium-term average. Asset quality indicators of the bank are also sound and compare favorably to the industry average.

Stability at Board and management level has reinforced the organizational culture and has allowed uninterrupted implementation of the bank's business strategy. The bank is owned in majority by the AlBaraka Banking Group, which is a prominent franchise in Islamic finance and is spread over 15 Islamic countries.

Some improvement has been noted in Jordan's macroeconomic environment in the past few years, with sustained GDP growth, controlled inflation and an accommodative monetary policy, which has buoyed banking sector performance. Regional instability may however continue to be a significant challenge.

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For further information on this rating announcement, please contact the undersigned at sabeen.saleem@iirating.com or Mr. Moh'd Raza Lakhani at raza.lakhani@iirating.com.

© Press Release 2015