S&P Global Ratings (S&P) has reaffirmed Qatar Islamic Bank’s (QIB) Issuer Credit Rating at ‘A-/A-2’ with a stable outlook.
S&P said its ratings on QIB reflect the global rating agency’s view of QIB’s robust corporate banking franchise, the bank’s favourable position as Qatar's largest Islamic bank, and QIB’s relatively conservative management.
S&P said, “We expect NPF coverage by provision will continue exceeding 150% over the next three years and still view the bank’s capitalisation as a strong shelter. The bank’s funding profile is dominated by core customer deposits, 20% of which come from abroad with a good diversification by country.
S&P added that QIB’s stable outlook “reflects our view that QIB’s financial profile will remain broadly stable over the next 12-24 months despite the significant pressure on its operating environment.”
Commenting on the latest rating, QIB Group CEO Bassel Gamal said: “We are pleased with the reaffirmation of our rating by S&P. Despite the current global challenges, it has re-confirmed the strong financial position of Qatar, the banking sector outlook and QIB’s financial vigour, which has been steadily improving in line with our long-term strategies and objectives. It is a confirmation of QIB’s stability, sustainable business model, high asset quality and robust capital position.”
He added: “We will remain committed to the highest work standards, and we will continue implementing our long-term business strategy with a continued focus to contribute to the growth of the local economy, while always being ready to navigate any potential challenges.”
QIB recently announced the results for the nine-month period ended September 30, 2020. Net profit amounted to QR2.21bn for the first nine months of 2020 in line with the performance during the same period in 2019.
Total assets of the bank now stand at QR170bn, higher by 4% compared to December 2019 with a growth of 9.8% compared to September 2019, driven by the continued growth in the financing and investing activities.
Financing activities have now reached QR113.2bn having grown by 5.7% compared to September 2019. Customer deposits of the bank now stand at QR112bn higher by 5% compared to September 2019.