The international credit rating agency, Capital Intelligence, has affirmed National Bank of Bahrain's (NBB) Long and Short-term Foreign Currency Ratings at 'BBB+' and 'A2' respectively, both on 'Negative' Outlook. These ratings and Outlook are set at the same level as CI's Sovereign ratings for Bahrain. Capital Intelligence also reaffirmed the Bank's Financial Strength Rating (FSR) at "A " with a Stable outlook and Support Level of '1'.
As Bahrain's flagship bank, NBB commands an important position in the local banking sector. In addition to a very solid CAR, the Bank's free capital is high and provides a strong buffer against unprovided NPLs. The 'effective coverage' (loan-loss reserves plus free capital) exceeded NPLs by a wide margin. NBB's CAR is currently among the best of retail banks in the local market and has risen steadily as a result of a sustained decline in risk-weighted assets. The affirmation of the ratings is the result of its leading domestic franchise, consistent profitability, healthy asset quality, sound liquidity and strong capitalization. NBB's liquidity ratios are currently among the best in the GCC region. Profitability continued to be strong at both the operating and net levels driven by diversified sources of net interest and non-interest income in combination with excellent cost control.
The Bank's Chief Executive Officer and Director, Mr. Abdul Razak Abdulla Hassan Al Qassim expressed his satisfaction on the affirmation of the Bank's ratings by Capital Intelligence and added, "The affirmation of our ratings is a clear expression of confidence by the international rating agency in Bahrain's economy and the banking sector in general and an endorsement of our business strategies in particular in these challenging times."
National Bank of Bahrain is the country's leading provider of commercial and retail banking services with the largest banking network extending to 26 branches and 58 ATMs. The Bank has been operating a branch in Abu Dhabi since 1983 while the Riyadh branch started its operations in 2008.
© Press Release 2013
