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Moody’s affirms ABK long-term credit rating

Moody’s affirms ABK long-term credit rating
ABK's capital adequacy ratio (CAR) stood at 18.6% in 2019
-1.18% 168.00 -2.00

Mubasher: Moody’s Investors Service has affirmed the long-term deposits rating of Ahli Bank of Kuwait (ABK) at ‘A2’, with a ‘Stable’ outlook.

The ‘baa3’ standalone Baseline Credit Assessment (BCA) reflects the lender’s strong capitalisation, stable financing base, and large buffers required to offset losses from loans, according to a statement by the bank to Boursa Kuwait on Thursday.

Moody’s said that ABK’s quality of assets improved during 2019, adding that the income before provisions stabilised whereas higher provision costs led to a modest profitability.

The credit outlook highlights the advantages that resulted from the bank’s regional diversification. Moody’s further expected the bank’s capitalisation to remain higher than its peers for the coming 12 to 18 months.  

Moody’s noted that ABK has low volumes of non-performing loans (NPLs) and holds sufficient provisions.

The capital adequacy ratio (CAR) of ABK was 18.6% by 2019 year-end.

Last year, ABK logged KWD 28.7 million profits, down by 32% from KWD 42.12 million in 2018.