...Sharjah Islamic Bank PJSC's (SIB) Issuer Default Ratings (IDRs) are driven by potential support from the UAE authorities, as reflected in its Government Support Rating (GSR) of `bbb+', two notches below Fitch Ratings' `a' GSR for UAE domestic systemically important banks (D-SIBs). SIB's GSR reflects the UAE's strong ability for, and record of, supporting the banking system. However, it also factors in SIB's limited systemic importance due to its smaller market share (about 1.6% of sector assets at end-2023). The Viability Rating (VR) reflects the bank's modest franchise, vulnerable asset quality, moderate profitability, and only-adequate capital ratios in light of its high financing concentrations. It also reflects the bank's sound funding and liquidity. Favourable Environment: Operating conditions were solid for UAE banks in 2023, and Fitch expects these to remain strong in 2024. We forecast that lending growth will slow slightly in 2024, to 5% (9M23: 6.2%), due to still-high interest...
