Capital Intelligence affirms Alizz Islamic Bank’s Rating with Stable Outlook

Roundup Saturday 28/May/2022 13:01 PM
By: Times News Service
Capital Intelligence affirms Alizz Islamic Bank’s Rating with Stable Outlook

Alizz Islamic Bank (AIB) announced that the international credit rating agency, Capital Intelligence has affirmed Alizz Islamic Bank’s (AIB) Long- and Short-Term ratings on the Oman National Scale at ‘omAA’ and ‘omA1+’, respectively with stable outlook which was improved during the year as a result of change in outlook of Oman Sovereign rating and strengthening of the bank’s financial position.

The report emphasized that the credit rating of AIB is based on the Bank’s resilient financing quality metrics, sound liquidity position and a return to net profit in 2021. The non-performing financing ratio remained moderately low and a more than average provision coverage position compared to the peer banks was maintained. The continued expansion of customer deposits further supports the Bank’s sound liquidity position. The Bank’s return to net profit in 2021 was aided by a wider net financing margin and a rise in fee based income.

Commenting on the result of this report, Sulaiman Al Harthi, Chief Executive Officer of Alizz Islamic Bank, said, “Strengthening of the fiscal balance and improved macroeconomic indicators resulted in improvement of the outlook for Oman’s sovereign rating and will have a positive effect on the banking sector as well”. He added, “The Bank will continue its transformation journey and intend to deliver sustainable results based on well-defined strategy and improved economic environment of the Sultanate”.

Added:  “Oman is witnessing a gradual recovery in the economic activities after lifting of Covid-19 restrictions. This along with other initiatives taken by the Government to support the economy has helped the banking sector to navigate through these challenging times. The Bank is on the right path to continue its growth momentum with strong support from its shareholders and endeavor to enhance the shareholders’ value and emerge as a solid Islamic banking franchise”.