Manama: 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 assigned to JIB derive strength from the institution’s strong franchise as the largest retail Islamic bank operating in Jordan.
The bank’s financial risk profile is also healthy, with strong and improving asset quality indicators, sufficient profitability position, and sizable liquid reserves.
Leverage indicators of the institution, although higher vis-à-vis the industry aggregates, are at a
comfortable level.
Jordan’s macroeconomic environment, however, remains challenging against the backdrop of regional
instability.
Any improvement in the country’s economic indicators is likely to enhance growth prospects for the banking sector, and further strengthen the ratings assigned to JIB.
The bank has been proactive in incorporating changes in the code of corporate governance for Islamic banks issued by the Central Bank of
Jordan.
The composition of the board vis-à-vis independent directors stands enhanced, with realignment of an independent director’s definition with best practices.
Steps are also being taken to upgrade business systems and processes to improve the overall customer service experience.
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