Research Update: Sharjah Islamic Bank 'A-/A-2' Ratings Affirmed; Outlook Revised To Negative From Stable On Capital Pressure

Sharjah Islamic Bank's (SIB's) capital ratios have declined in recent years, with its risk-adjusted capital (RAC) ratio falling to 8.9% at year-end 2024, partly due to significant balance sheet growth along with acquisition of treasury shares in fourth-quarter 2024. While we anticipate a recovery in capitalization, its path forward is now more uncertain and subject to management actions on capital increase. We have therefore revised our outlook on SIB to negative from stable while affirming our 'A-/A-2' long- and short-term issuer credit ratings. The negative outlook reflects that we may lower the ratings if SIB fails to sustainably rebuild its capital ratios. On March 26, 2025, S&P Global Ratings revised its outlook on SIB to negative from stable. At the

...To From Issuer Credit Rating A-/Negative/A-2 A-/Stable/A-2 SACP ###- ###- Anchor ###- ###- Business position Moderate (-1) Moderate (-1) Capital and earnings Strong (+1) Strong (+1) Risk position Adequate (0) Adequate (0) Funding and liquidity Adequate and adequate (0) Adequate and adequate (0) Comparable ratings analysis 0 0 Support +3 +3 ALAC support 0 0 GRE support 0 0 Group support 0 0 Sovereign support +3 +3 Additional factors 0 0...

Research Update