DUBAI: Moody’s Investors Service has upgraded Dubai Islamic Bank’s (DIB) local and foreign currency long-term issuer ratings to A3 from Baa1 changed its outlook for the bank has been changed to stable from positive.
The ratings agency also upgraded the bank’s baseline credit assessment (BCA), adjusted BCA as well as the long and short-term counterparty risk assessment.
The primary driver for the BCA upgrade is the bank’s significant improvement in its asset quality and provisioning coverage, despite challenges in the operating environment owing to low oil prices, Moody’s said.
“The upgrade also captures DIB’s improving profitability in recent years, with return on assets (ROA) improving to 2.0 percent for 2016 (stable during the first six months of 2017), up from 1.4 percent for 2013,” Moody’s said. “The improvement is driven by a substantial reduction in the bank’s provisioning charges, which absorbed 17 percent of pre-provision income in the first half of 2017, down from 36 percent in 2013.”
DIB, Dubai’s largest Shariah-compliant lender, said that its net income rose 13.8 percent in the second quarter to Dh1.1 billion compared with Dh929 million in the same period last year. Net financing income rose 18 percent to Dh1.9 billion for the quarter ending July although income from commissions, fees and foreign exchange income fell 7.7 percent over the same period
“Going forward, the rating agency expects that the bank’s net profitability may face modest pressure, due to increased funding costs, but that it will remain above the domestic average and global median.”
Moody’s upgrades Dubai Islamic Bank ratings
Moody’s upgrades Dubai Islamic Bank ratings
Closing Bell: Saudi main index closes in red at 10,847
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 58.51 points, or 0.54 percent, to close at 10,847.93.
The total trading turnover of the benchmark index was SR3.78 billion ($1 billion), as 73 of the listed stocks advanced, while 187 retreated.
The MSCI Tadawul Index decreased, down 7.09 points or 0.48 percent, to close at 1,472.98.
The Kingdom’s parallel market Nomu lost 178.75 points, or 0.77 percent, to close at 22,916.83. This comes as 30 of the listed stocks advanced, while 37 retreated.
The best-performing stock was the Power and Water Utility Co. for Jubail and Yanbu, with its share price surging by 8.47 percent to SR31.24.
Other top performers included Saudi Paper Manufacturing Co., which saw its share price rise by 6.13 percent to SR53.70, and Jamjoom Pharmaceuticals Factory Co., which saw a 4.58 percent increase to SR137.
On the downside, the worst performer of the day was CHUBB Arabia Cooperative Insurance Co., whose share price fell by 5.14 percent to SR17.53.
Saudi Kayan Petrochemical Co. and Arabian Internet and Communications Services Co. also saw declines, with their shares dropping by 4.87 percent and 4.43 percent to SR4.88 and SR181.40, respectively.
On the announcement front, Saudi Kayan Petrochemical Co. announced its annual financial results for 2025, with sales dropping 3.06 percent year-on-year to SR8.45 billion. The company also recorded a net loss of SR893.86 million.
In a Tadawul statement, the company said the net loss and decline in annual sales were driven by a drop in average selling prices, despite higher sales volumes.
