International credit rating agency, Standard & Poor’s (S&P) has revised the outlook on Qatar Islamic Bank (QIB) to ‘stable’ and affirmed the ‘A-/A-2’ issuer credit rating.
According to the report issued by S&P: “Our rating on QIB reflects our view of the bank’s robust corporate banking franchise and favourable position as Qatar’s largest Islamic Bank. QIB’s capital is strong and supports the rating. The bank continues to display robust assets quality indicators.
“QIB’s funding profile is now more balanced, as the bank has replaced GCC deposits with core domestic deposits. QIB’s stable funding ratio reached 111%, the bank’s liquidity is also adequate, with around 6% of assets placed in liquid forms and another 20% placed most in Qatari government sukuk.”
The report also reflected on the “elasticity” of the Qatari banks being able to absorb the initial shock of the Gulf crisis; in addition, the wise and effective leadership of the government on the ongoing issues related to trade and financial flows.
QIB’s group CEO Bassel Gamal said, “We are pleased with the revised outlook on QIB and the affirmation of the rating by S&P. These are solid confirmations on asserting the bank’s enhanced asset quality and robust capital position”
“QIB is able to maintain a stable and healthy growth across all key performance indicators,” said Gamal.
“The ratings affirm the Bank’s success in pursuing our long-term growth and performance objectives and speak to the vigour of Qatar’s economy and of the Islamic banking industry in the country” he added.
In the first nine months of 2018, QIB achieved a net profit in excess of QR2bn, representing a growth of 13% over the same period in 2017.
Its total assets have increased by 1.4% compared to December 2017, and now stand out QR152.5bn.
Established in 1982, QIB was the first Islamic bank in Qatar. Today, it is the second largest bank, and largest Islamic bank in the country, with a market share above 10% in terms of total assets as of year-end 2017.
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