Sharjah Islamic Bank

Very strong and stable capitalization. Adequate funding and liquidity. Strong relationship with the Emirate of Sharjah, its largest shareholder. High single-name lending concentrations. Limited, although growing footprint in the United Arab Emirates (UAE) banking segment. Large part of net income coming from noncore revenues. S&P Global Ratings' outlook on UAE-based Sharjah Islamic Bank (SIB) is stable. The outlook reflects our view that the bank's business and financial profiles will remain resilient over the next 24 months. We expect SIB's capitalization and earnings, including our risk-adjusted capital (RAC) ratio for the bank, to remain generally stable over the period. Although unexpected, we would consider a negative rating action if our assessment of SIB's capitalization deteriorated. This would be due to our

...Large part of net income coming from noncore revenues. Outlook: Stable S&P Global Ratings' outlook on UAE-based Sharjah Islamic Bank (SIB) is stable. The outlook reflects our view that the bank's business and financial profiles will remain resilient over the next 24 months. We expect SIB's capitalization and earnings, including our risk-adjusted capital (RAC) ratio for the bank, to remain generally stable over the period. Although unexpected, we would consider a negative rating action if our assessment of SIB's capitalization deteriorated. This would be due to our projected RAC ratio for the bank falling below 15%, which we see as a remote scenario. We could also downgrade the bank if we saw substantial deterioration in its asset quality. A positive rating action, again quite remote at this stage, could be triggered by a two-notch upward revision of SIB's stand-alone credit profile (SACP) to '###+' from '###-'. This could happen if we were to revise upward our views of economic or industry...

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