Moody's Elevates ADIB’s Financial Health With Baseline Credit Assessment Upgrade

In a significant financial update, Abu Dhabi Islamic Bank (ADIB) has seen an upgrade in its Baseline Credit Assessment (BCA) by Moody's, alongside the affirmation of the bank's credit ratings. This development is a testament to ADIB's sustained stability and financial health improvement. The upgrade reflects positively on ADIB's profitability, which has been buoyed by higher margins and diversified revenue streams. In 2023, ADIB reported a historic peak in net profits, marking a substantial rise in net income relative to tangible assets. Furthermore, the bank's capitalisation levels have seen an enhancement, with a notable reliance on stable, low-cost deposits from current and savings accounts contributing to its financial resilience.

Moody's has affirmed ADIB's local and foreign currency long-term issuer ratings at A2 and maintained short-term issuer ratings at Prime-1. The agency also elevated the bank's BCA and Adjusted BCA to baa3 from ba1. The outlook on these long-term issuer ratings remains stable. This affirmation and upgrade underscore Moody's recognition of ADIB's pivotal role within the local banking sector and the government's unwavering support for banks during economically challenging times.

Mohamed Abdelbary, Acting Group Chief Executive Officer at ADIB, commented on the achievement, stating, "Moody's affirmation of our ratings and the upgrade to our Baseline Credit Assessment underscores the robust financial position and resilience of ADIB. This recognition highlights our strong capital base and unwavering commitment to navigate dynamic market landscapes." He further emphasized ADIB's leadership in Islamic finance, driven by a commitment to innovative Sharia-compliant banking solutions and superior financial services.

ADIB has demonstrated record-breaking performance in 2023, with significant growth across all its business segments. The bank has seen an expansion in market share, alongside increases in customer finance and income. A key aspect of this growth has been enhancing its digital footprint, with a rise in actively digital customers through improvements to its mobile app. Additionally, ADIB has reinforced its commitment to sustainability by strengthening its ESG strategy and governance framework. This move aligns with the bank's sustainable banking agenda for the next three years, highlighting its dedication to growth, performance, and innovation.

With inputs from WAM