Fitch praises TAIB Bank's performance.MANAMA: Global financial monitor Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has given the thumbs up to Bahrain's TAIB Bank for its strong capitalisation and sound liquidity. The rating firm affirmed TAIB's ratings at long-term issuer default rating (IDR IDR In currencies, this is the abbreviation for the Indonesian Rupiah. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ) 'BBB+' with stable outlook. It assigned short-term IDR an 'F2' and individual 'C/D' and support '2'. TAIB Bank's IDRs and support rating reflect expected support from its majority (60 per cent) shareholder, Dubai Financial Group (DFG DFG Deutsche Forschungsgemeinschaft (German Research Council) DFG Department of Fish and Game DFG District Factor Group DFG Data Flow Graph DFG Difference Frequency Generation DFG Diode Function Generator DFG Dog Faced Gremlin ), in case of need, said the rating agency. DFG, the financial institutions holding company of Dubai Holding Dubai Holding (Arabic:دبي القابضة) is a holding company that belongs to Government of Dubai (Sheikh Mohammed bin Rashid Al Maktoum as the Ruler of Dubai holds 99.67% of the company[1]). , is effectively wholly-owned by the ruler of Dubai. "The individual rating reflects the bank's strong capitalisation, sound liquidity, reasonable growth of its modest private banking franchise and declining future direct exposure to the property market," Fitch said. "It also reflects volatility in performance and concentration in funding." Last year, operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. declined 24pc. Volatility in performance has arisen in large part from the bank's real estate activities, where realised gains/losses from investment exits tend to be fairly large and infrequent. In addition, the bank had been somewhat inward looking in anticipation of DFG's acquisition of 60pc of the bank's shares in the fourth quarter of last year. In the fourth quarter of 2006, TAIB spun out its profitable real estate investment activities into a new company, Acacia acacia (əkā`shə), any plant of the large leguminous genus Acacia, often thorny shrubs and trees of the family Leguminosae (pulse family). Real Estate (Acacia), thus reducing future direct property exposure and potential volatility in revenue while retaining exclusive rights to distribute Acacia's products. Market risks are within tolerable limits. Credit risk is mitigated, as the loan book is small, the rating agency said. Established in 1979, TAIB Bank is a financial institution that repositioned itself as a private bank in 2004. It was listed on the Bahrain Stock Exchange The Bahrain Stock Exchange (BSE), was established in 1987 by Amiri Decree No.(4) and officially commenced operations on June 17, 1989 with twenty-nine listed companies. Currently, there are 50 companies listed on the exchange. in 1994 and has subsidiaries in Dubai, Kazakhstan, India, Qatar, Turkey, the UK and the US. Copyright [c] 2008 Gulf Daily News Provided by Syndigate.info an Albawaba.com company |
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