Abu Dhabi: Ratings agency Standard & Poor’s (S&P) affirmed on Monday its ‘A’ long-term and ‘A-1’ short-term credit ratings of Abu Dhabi Commercial Bank (ADCB) and maintained the outlook as stable.
The outlook reflects S&P’s expectation that ADCB’s business and financial profiles will remain broadly stable over the next 24 months.
The rating affirmation follows a revision by S&P of its assessment of ADCB’s business position to strong from adequate.
“Over recent years, the bank has demonstrated a track record of improving returns, coupled with more balanced earnings generation across different business segments. In our view, the management team’s execution capabilities are well-reflected in the bank’s key financial and business metrics, which have improved substantially,” S&P said in a statement.
The ratings agency pointed, however, that it expects some deterioration in ADCB’s asset quality indicators over the next 24 months, but believes the impact of that on the financial profile will be “manageable”.
The rating affirmation from S&P was released just a few hours before ADCB reported its financial results for the first half of 2016. The bank recorded Dh2.15 billion in net profit for the period — down 15 per cent compared to the Dh2.5 billion reported in the same half of 2015.