S&P reaffirms QIB’s credit rating with stable outlook
S P Global Ratings (S P) has reaffirmed Qatar Islamic Bank’s (QIB) issuer credit rating at A- A-2’ with stable outlook.
S P said that 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 percent over the next three years and still view the bank’s capitalization as a strong shelter. The bank’s funding profile is dominated by core customer deposits, 20 percent of which come from abroad with a good diversification by country.”
S P said 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 Chief Executive Officer 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.”
“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,” Bassel said.
QIB has recently announced the results for the nine months’ period ended September 30, 2020. Net profit attributable to the shareholders of the bank amounted to QR2.216 billion for the nine months’ period ended September 2020 in line with the performance during the same period in 2019.
Total assets of the bank now stands at QR170 billion higher by 4 percent compared to December 2019 with a growth of 9.8 percent compared to September 2019 driven by the continued growth in the financing and investing activities.
Financing activities have now reached QR113.2 billion having grown by 5.7 percent compared to September 2019. Customer deposits of the bank now stand at QR112 billion higher by 5 percent compared to September 2019.