Case Study: Abu Dhabi Islamic Bank achieves IFRS 9 compliance and reduced portfolio risk with FICO Model Builder

ADIB reduces risk while meeting IFRS 9 requirements

Abu Dhabi Islamic Bank (ADIB), a leading Sharia‑compliant bank in the UAE, faced the challenge of moving from portfolio‑level application scoring to more granular, forward‑looking modeling to meet IFRS 9 impairment requirements. The bank needed to develop retail behavior models that estimate lifetime expected credit losses, integrate into monthly provisioning, and satisfy external validators.

FICO used FICO® Model Builder to create behavior scorecards, lifetime expected‑credit‑loss models and forward‑looking adjustments, ran workshops with ADIB’s teams and engaged external validators to transfer knowledge and secure approval. The outcome: ADIB achieved IFRS 9 compliance, gained stable, predictable provisioning, reduced portfolio risk, and now has the analytic framework and flexibility to manage risk at both account and portfolio levels.

Abu Dhabi Islamic Bank

Syed A. Moiz

Group Head of Enterprise Risk Management