International Islamic CEO Abdulbasit A al-Shaibei has said recent Moody’s recent affirmation of the bank ratings with a positive outlook clearly reflects the bank’s financial strength and progress in implementation of its medium-term and long-term strategies.
Global credit rating agency Moody’s recently affirmed ‘A3’ global long-term issuer ratings on International Islamic and upgraded its outlook on the rating to “positive” from “stable”.
“Moody’s affirmation of our ratings at A3 and changing its outlook on the bank’s long-term ratings to positive from stable are a clear reflection of the bank’s financial strength and ability to consolidate our position and expand customer base and enhance transactions steadily.
“We are proud to be in line with the successful national economy, which witnesses continued growth across various sectors. At International Islamic, we have significantly gained from the national economy that helps consolidate our position as a leader in Islamic finance in the region,” he said.
Al-Shaibei said, “The new development comes close on the heels of Fitch raising our ratings to ‘A’ from ‘A-‘ with a stable outlook. This further attests the fact that we are making progress in the implementation of the medium term and long term strategy laid down by our Board of Directors. We are focused towards achieving greater customer satisfaction as we are a customer-centric bank. Providing the best and most appropriate service and products to our customers remains our goal,” the CEO said.
He said the bank worked earnestly to contribute to the national economy, mainly by financing various projects that added value to Qatar. At the same time, International Islamic is led by Shariah-based principles, be it in product innovation or launch.
The efforts taken by the Qatar Central Bank to enhance the strength and durability of the local banks and support them need to be commended. This has placed Qatari banks at the forefront of regional and international banking, al-Shaibei said.
He expressed the confidence that the bank would continue to play an effective role in contributing to the national economy and providing benefits to its customers and shareholders.
Moody’s said its affirmation reflects International Islamic’s strong capitalisation, liquidity and funding profile, even as these strengths are moderated by high borrower and sector concentrations and by risk management challenges stemming from rapid financing growth.
The change in outlook to “positive” from “stable” reflects the expansion of the lender’s Islamic franchise, particularly in the retail segment and the recent improvements in asset-quality metrics, the rating agency said.
The rating affirmation factored in International Islamic’s strong capitalisation position with a reported Tier 1 ratio (under Basel II) of around 18% as of December 2013.
“Going forward, we expect the continued focus on retail deposits will further support the liquidity and funding position of the bank,” Moody’s said.