Capital Intelligence upgrades Gulf International Bank's credit rating

The Bank's long-term and short-term ratings were reaffirmed at A- and A2 respectively, with a stable outlook.

The Financial Strength Rating provides an evaluation of a bank's inherent financial strength and soundness, excluding all potential external support. The A- rating is defined as reflecting strong financial fundamentals and very favourable non-financial considerations, such as strategy and management.

The rating upgrade, which follows similar upgrades by Fitch Ratings and Moody's Investor Services, reflects the success of GIB's new GCC-focused merchant banking strategy and the improved environment in which it operates.

Capital Intelligence's rating report states that GIB's new merchant banking strategy "appears to be paying dividends as evidenced by rising fee income and product cross-selling" and continues "GIB's financial profile remains sound, characterised by an adequate level of capital, a conservative provisioning policy and comfortable liquidity". Particular strengths identified in the report include a strong wholesale banking and project finance franchise in the Gulf region and good overall asset quality.

Dr. Khaled M. Al-Fayez, GIB's Chief Executive Officer, stated that he was delighted with the new upgrade, which reflected the bank's ongoing commitment to manage itself in such a manner as to enhance its assigned credit ratings. He added that as a result, GIB is one of the highest rated financial institutions in the Middle East. The rating upgrade provides a further independent validation of the successful progress in the implementation of the bank's GCC-focused merchant banking strategy.