World's Safest Banks 2016: Middle East Top 50

Qatari banks benefit from strong sovereign rating, despite size.

The safest banks in the Middle East are all based in the GCC, with the exception of the two large Israeli banks, Hapoalim and Leumi, which rank 26th and 27th. National Bank of Abu Dhabi remains the Safest Bank in the Middle East and the only one to hold ratings in the AA-range from all three rating agencies. (It has three AA- ratings.) Qatar National Bank and National Bank of Kuwait follow, with two AA- ratings and an A+.

Banks from the United Arab Emirates contribute 13 banks to the Top 50.

Saudi banks have been downgraded over the last year as a result of the downgrading of the Saudi government’s rating, but 10 out of the kingdom’s 12 domestic commercial banks still find a place among the safest 50 banks in the Middle East. Nonetheless, the strongest Saudi Bank, National Commercial Bank, ranks only 18th.

Ratings on the governments of Kuwait, Qatar and the United Arab Emirates have not been downgraded, and the leading banks in these countries continue to enjoy AA or A ratings. Qatari banks in particular are benefiting from their government’s AA ratings. Several quite small Qatari banks are now ranked higher than regional giants based in Saudi Arabia.

Bahrain is now rated sub-investment-grade by all three agencies, but three Bahraini banks qualify for the Top 50 ranking because they are able to pierce the sovereign rating “ceiling” as a result of their diverse asset profile (which reduces their reliance on Bahraini business) and regional shareholders.

Banks from Middle Eastern countries outside the GCC or Israel do not come close to scoring highly enough to reach the Top 50. Countries such as Lebanon and Egypt are rated deep in sub-investment-grade territory and their banks receive correspondingly low ratings. Even banks in Morocco, which fall just below the investment/sub-investment grade divide, fall well short of the number of points needed for inclusion.

THE SAFEST MIDDLE EASTERN BANKS
Rank	Group Name	Country	Ratings			Total Score	Assets $ mn	Statement Date
Rank	Group Name	Country	Fitch	Moody’s	S&P	Total Score	Assets $ mn	Statement Date
1	National Bank of Abu Dhabi	UAE	AA-	Aa3	AA-	21	110,705	12/31/15
2	Qatar National Bank	Qatar	AA-	Aa3	A+	20	147,969	12/31/15
3	National Bank of Kuwait	Kuwait	AA-	Aa3	A+	20	77,752	12/31/15
4	Abu Dhabi Commercial Bank	UAE	A+	A1	A	17	62,156	12/31/15
5	Union National Bank	UAE	A+	A1	N/R	17	27,743	12/31/15
6	Al Hilal Bank	UAE	A+	A1	N/R	17	11,734	12/31/15
7	First Gulf Bank	UAE	A+	A2	A	16	61,946	12/31/15
8	Kuwait Finance House	Kuwait	A+	A1	A-	16	54,454	12/31/15
9	Abu Dhabi Islamic Bank	UAE	A+	A2	N/R	15.5	32,234	12/31/15
10	Al Ahli Bank of Kuwait	Kuwait	A+	A2	N/R	15.5	14,363	12/31/15
11	Ahli United Bank	Kuwait	A+	A2	N/R	15.5	12,864	12/31/15
12	Barwa Bank	Qatar	A+	A2	N/R	15.5	12,418	12/31/15
13	Qatar International Islamic Bank	Qatar	A+	A2	N/R	15.5	11,137	12/31/15
14	AhliBank	Qatar	A+	A2	N/R	15.5	8,873	12/31/15
15	International Bank of Qatar	Qatar	A+	A2	N/R	15.5	8,766	12/31/15
16	Doha Bank	Qatar	A+	A2	A-	15	22,887	12/31/15
17	Gulf Bank	Kuwait	A+	A2	A-	15	17,917	12/31/15
18	National Commercial Bank	Saudi Arabia	A	A1	BBB+	14	119,824	12/31/15
19	Emirates NBD	UAE	A+	A3	N/R	14	110,704	12/31/15
20	Al Rajhi Bank	Saudi Arabia	A	A1	BBB+	14	84,165	12/31/15
21	Samba Financial Group	Saudi Arabia	A	A1	BBB+	14	62,731	12/31/15
22	Qatar Islamic Bank	Qatar	A+	N/R	A-	14	34,898	12/31/15
23	Commercial Bank of Qatar	Qatar	A+	A2	BBB+	14	33,907	12/31/15
24	Al Khaliji Bank	Qatar	A+	A3	N/R	14	15,559	12/31/15
25	Commercial Bank of Kuwait	Kuwait	A+	A3	N/R	14	13,303	12/31/15
26	Bank Hapoalim	Israel	A-	A2	A-	13	110,620	12/31/15
27	Bank Leumi	Israel	A-	A2	A-	13	106,740	12/31/15
28	Riyad Bank	Saudi Arabia	A	A2	BBB+	13	59,551	12/31/15
29	SABB (formerly Saudi British Bank)	Saudi Arabia	A-	A1	BBB+	13	50,067	12/31/15
30	Banque Saudi Fransi	Saudi Arabia	A-	A1	BBB+	13	48,993	12/31/15
31	Burgan Bank	Kuwait	A+	A3	BBB+	13	22,487	12/31/15
32	Boubyan Bank	Kuwait	A+	Baa1	N/R	12.5	10,323	12/31/15
33	Gulf Investment Corporation	Kuwait	A-	A2	N/R	12.5	5,097	12/31/15
34	Arab National Bank	Saudi Arabia	A-	A2	BBB+	12	45,446	31/12/15
35	Dubai Islamic Bank	UAE	A	Baa1	N/R	11	40,816	12/31/15
36	Saudi Hollandi	Saudi Arabia	A-	A3	N/R	11	28,819	12/31/15
37	Sharjah Islamic Bank	UAE	BBB+	A3	BBB+	11	8,137	12/31/15
38	Warba Bank	Kuwait	A+	Baa2	N/R	11	2,558	12/31/15
39	Mashreq Bank	UAE	A	Baa2	BBB+	10	31,357	12/31/15
40	Saudi Investment Bank	Saudi Arabia	A-	A3	BBB	10	24,969	12/31/15
41	Gulf International Bank	Bahrain	A-	Baa1	N/R	9.5	24,192	12/31/15
42	Bank Aljazira	Saudi Arabia	A-	Baa1	N/R	9.5	16,870	12/31/15
43	Commercial Bank of Dubai	UAE	A-	Baa1	N/R	9.5	15,756	12/31/15
44	National Bank of Fujairah	UAE	NR	Baa1	BBB+	9	8,177	12/31/15
45	RakBank	UAE	BBB+	Baa1	N/R	8	11,042	12/31/15
46	Bank Muscat	Oman	BBB+	Baa1	BBB-	7	32,625	12/31/15
47	Ahli United Bank	Bahrain	BBB+	N/R	BBB	6.5	33,965	12/31/15
48	Bank Dhofar	Oman	BBB	Baa2	N/R	5	9,345	12/31/15
49	National Bank Of Oman	Oman	BBB	Baa2	N/R	5	8,487	12/31/15
50	Bank ABC	Bahrain	BBB-	Ba1	N/R	-1	28,195	12/31/15
Asset data from Fitch except where noted.