...High Probability of State Support: Sharjah Islamic Bank's (SIB) Issuer Default Ratings (IDRs) are driven by a high probability of support from the UAE authorities if needed. This reflects the UAE's strong capacity to support the banking system and its long record of supporting domestic banks. However, it also factors in Fitch Ratings' view of SIB's lower relative systemic importance than peers' due to its smaller market share and franchise. SIB's Viability Rating (VR) reflects the bank's modest franchise, above-average impaired financing ratio, high financing concentration and profitability below peer average. It also considers adequate reserve coverage, acceptable management and strategy, sound funding, stable liquidity and strong capital ratios. Small Franchise: SIB's VR is constrained by the bank's modest franchise, although it benefits from its close ties to the Sharjah government. SIB's market share was 1.4% of UAE banking system assets and 1.6% of deposits at end-1H17, which limits...
