Fitch affirms Jordan's Cairo Amman Bank at Support '3'

The rating reflects the moderate probability of support being available from the Jordanian authorities if needed.

Fitch considers the authorities would be willing to support CAB, especially given its retail focus.

However, the sovereign's current economic position means the probability of support is viewed as moderate.

Revenue generation strengthened in 2007, driven by rising interest and fee income; however, rising costs - mostly staff and marketing costs - led to flat y-o-y operating profit.

Asset quality improved strongly in 2007 with the non-performing loan (NPL) ratio dropping to 6% (2006: 10.3%).

This improvement was due to a combination of more aggressive write-offs, recovery of certain Palestinian NPLs and reclassification of certain others (as being on watch rather than a NPL).

CAB is the seventh-largest bank in Jordan, controlling about 5% of consolidated banking system assets, and with a market share of about 3.6% of Jordanian deposits and 4.4% of loans.

It has 55 branches in Jordan, through which it provides a broad range of retail and corporate financial services.

CAB is one of the most active Jordanian banks in the Palestinian Territories, where it has 17 branches and a market share of about 12% of deposits and 7% of loans.