WarbaBank

• CEO Shaheen Al-Ghanem: The affirmation reflects the bank’s asset quality, capital strength, and focus on sustainable growth

Moody's Ratings (Moody's) has affirmed the key credit ratings of Warba Bank, maintaining a stable outlook on all ratings. The rating action reflects the bank’s financial position, operational efficiency, and capacity for sustainable growth amid regional and global market shifts.

Key Ratings Breakdown:

According to the bank's regulatory disclosure, Moody’s affirmed the following ratings:

• Long-Term Deposit Rating: Affirmed at Baa1.
• Counterparty Risk Ratings (CRR) (Local & Foreign Currency): Affirmed at A3/P-2.
• Baseline Credit Assessment (BCA) & Adjusted BCA: Affirmed at ba2.
• Outlook: Stable.

Analytical Insight: Moody's noted that Warba Bank’s long-term deposit rating continues to benefit from a high probability of systemic government support, given the bank's systemic importance within Kuwait’s Islamic banking sector.

Capital Adequacy and Asset Quality:

The rating agency highlighted that Warba Bank’s ba2 standalone credit profile is supported by solid capitalization levels and a strong capacity to absorb potential shocks. This performance is underpinned by stable asset quality and the continued build-up of precautionary provisions.
Moody's emphasized that the bank's conservative credit policies and effective risk management framework have stabilized financial indicators despite cyclical economic headwinds affecting various business sectors.

CLiquidity Profile and Funding Structure:

The report underscored Warba Bank’s robust liquidity metrics, noting a stable funding structure backed by a resilient core deposit base. This liquidity profile provides an additional safety margin against potential funding pressures while positioning the bank to capitalize on upcoming credit and investment opportunities.

Executive Commentary:

Commenting on the affirmation, Shaheen Hamad Al-Ghanem, Chief Executive Officer of Warba Bank, stated: "Moody’s affirmation of our ratings with a stable outlook reflects confidence in Warba Bank’s financial strength, business model resilience, and ability to generate sustainable growth across varying economic cycles."

Al-Ghanem added: "This assessment confirms the success of our strategy, which prioritizes asset quality and the maintenance of strong capital and liquidity metrics. Moving forward, the bank will continue to optimize operational efficiency and adhere to global risk management and corporate governance frameworks to support the local economy and deliver long-term stakeholder value."

About Warba Bank:

Warba Bank is a leading Islamic bank in Kuwait with a strong focus on Sharia-compliant digital banking. With one of the largest shareholder bases in the country, the bank delivers innovative financial products and services, reinforcing its position as a digital-focused financial institution.