Canada Goose Jackets Fitch Rates Dubai’s Noor Bank ‘A
Canada Goose online (The following statement was released by the rating agency) DUBAI/LONDON, October 29 (Fitch) Fitch Ratings has assigned Dubai based Noor Bank a Long term foreign currency Issuer Default Rating (IDR) of ‘A ‘ and a Viability Rating (VR) of ‘b+’. The Outlook on the Long term IDR is buy canada goose jacket cheap Stable. A full list of rating actions is available at the end of this rating action commentary. Fitch assesses whether the banks are domestic systemically important financial institutions (D SIFI) based on each bank’s systemic importance relative to other banks in the banking system, and considering, among other things, market share and franchise. Noor’s Support Rating Floor is one notch below the UAE D canada goose uk outlet SIFIs’ Support Rating Floor due to Fitch’s view that it is less systemically important based on its smaller size and market share, and niche franchise, compared with Dubai Islamic Bank and Mashreq Bank, and in line with Commercial Bank of Dubai. Noor’s Support Rating Floor also considers the close ties and ownership links between Noor and the Dubai government. Noor’s IDRs are sensitive to a change in its Support Rating or Support Rating Floor. KEY RATING DRIVERS buy canada goose jacket VR The VR reflects Noor’s small but growing franchise, limited track record, weak asset quality, high concentrations in both the financing book and customer deposit base, and in this respect, low capital levels. The VR also considers Noor’s adequate liquidity, growing customer base and declining concentration, improving profitability, and diversified income stream. Noor is currently the fifth largest Islamic bank in the UAE, with a small domestic franchise (about 1.4% market shares in UAE financings), a consequence of canada goose jackets being a fairly young canada goose coats on sale bank. In canada goose clearance 1H14, gross financing increased 19.8%, following robust 26.2% growth in 2013. While Noor has uk canada goose been successful in growing its customer base and gradually improving the diversification of its financing book, it remains highly concentrated by both sector and single cheap Canada Goose name Canada Goose Outlet exposures, as is common in the region. Noor aims to grow further and capture market share as part of its new strategy. Balance sheet and net income growth should be achievable, in Fitch’s view, as the bank capitalises on an improving domestic operating environment. Net income increased to canada goose uk black friday AED217m in 1H14 (1H13: AED100m), driven by growth in retail, SME and wholesale financing. Noor’s profitability ratios are satisfactory, with a net income on average equity of 11% and net income canada goose coats on average assets of 1.2% in 2013. At end 1H14, the NPL ratio was 6.7%, down from 9.5% at end 2013, due to loan growth and canada goose loan restructuring, but still one of the highest of the Canada Goose Parka Fitch rated UAE banks. Fitch expects cheap canada goose uk NPLs to gradually decrease, supported by the improving domestic operating environment. Noor has one of the highest restructured loan books in the UAE due to its high concentration to Dubai government related entities, which could result in further large asset quality problems due to event risk. Canada Goose Online Customer deposits constitute about 95% of non equity funding and grew canada goose black friday sale 24% in 1H14 (2013: 32% growth). As is common at UAE banks, the deposit Canada Goose online base is highly concentrated, with the 20 largest depositors accounting for a significant portion of the total, mainly canada goose uk shop sourced from UAE government/government related entities. Noor aims to grow the contribution canadian goose jacket of current and savings accounts to its deposit base to reduce concentrations and lower funding costs. A large portion of Noor’s Canada Goose sale deposit base has a contractual maturity of three months or less, but large deposit balances are typically rolled canada goose store over and have proven stable. As part of its three year strategy, the bank aims to gradually improve its liquidity profile, by potentially accessing capital markets to improve asset and liability Canada Goose Coats On Sale mismatches. At canada goose factory sale end 1H14, the Fitch core capital ratio stood at 12.6%, which is lower than the UAE banks’ average, and is considered weak given the asset quality problems and high borrower concentrations. Noor has never distributed dividends and Fitch believes that this should continue to strengthen capital. RATING SENSITIVITIES VR Upside for the VR could arise from improvements in asset quality, particularly repayment of the large Dubai GRE exposures, and in capital. Further evidence of Noor implementing its strategy and building a track uk canada goose outlet record with no material deterioration in the bank’s risk indicators would also Canada Goose Jackets contribute to an upgrade. The VR may canada goose clearance sale be downgraded on material deterioration in asset quality further impacting the https://www.canadagooseoutletstore.co.uk bank’s profitability and capitalisation. Established in Dubai in 2008, Noor offers a wide range of sharia compliant wholesale, retail, treasury and investment banking services. It is mainly owned by the Dubai Ruling family and Dubai government and is regulated by the Central Bank of the UAE. Applicable Criteria and Related Research: 2014 Outlook: GCC/Middle East Banks here Global Financial Institutions Rating Criteria here Additional Disclosure Solicitation Status here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE ‘CODE OF CONDUCT’ SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.