DOHA: International credit rating agency, Standard & Poor’s (S&P) has affirmed Qatar Islamic Bank (QIB), Qatar’s leading Islamic Bank, the coveted ‘A-’ issuer credit rating.
According to the report issued by S&P, the major contributing factors strengthening QIB’s rating include the Bank being the largest Islamic Bank in Qatar and second-largest player in the market, its sound financial performance, and its strong capitalisation.
S&P, one of the top three international rating agencies, cited: “The rating reflect our views of the bank’s robust corporate banking franchise and favorable position as Qatar’s largest Islamic Bank. QIB’s capital is strong and supports the bank’s rating. QIB’s funding profile is now more balanced, since the bank replaced deposits from Gulf Cooperation Council (GCC) countries with core deposits from government and government-related entities in Qatar. QIB’s stable funding ratio reached 113.9% at year-end 2017. The bank’s liquidity is also adequate with around 7 percent of assets placed in liquid forms and another 20 percent placed mostly in Qatari government sukuk”.
Bassel Gamal, QIB’s Group CEO, said, “The rating affirms the Bank’s success in successfully implementing our long-term growth and performance objectives and speak to the strength of the banking industry in Qatar.”
“QIB continues to record steady, healthy growth across all key performance indicators,” said Bassel.
“In keeping with the Bank’s long-term growth strategy, QIB is continuously pursuing new means to deliver real value to all its stakeholders while adhering to the highest ethical standards,” he added.
QIB has demonstrated steady financial growth over the past five years and has been setting a benchmark for Islamic Banks in the region with its embrace of cutting-edge banking technologies, and its customercentric approach to both its product offering and the overall banking experience; offered across its renovated branch network and constantly developing digital channels.
QIB’s 2017 financial results showed a net profit of QR2.40bn for the fiscal year compared to QR2.15bn for the year 2016, thus marking an increase by 11.6 percent over last year.
Total Assets of the Bank have increased by 7.5 percent compared to 2016 and now stand at QR150bn driven by a growth in the financing activities that have now reached QR102.6bn having added QR4.4bn, representing a 4.5 percent growth over 2016.
