DOHA, QATAR: Qatar Islamic Bank (QIB) has reconfirmed its ongoing positive rating with Capital Intelligence (CI) Ratings today announcing the Bank’s Long-Term and Short-Term Ratings of ‘A+’, and ‘A1’ respectively, with a stable outlook.
Capital Intelligence’s Credit Rating Report reaffirmed QIB’s strong franchise and market position, with 49% of total assets of listed Islamic banks in Qatar. QIB continues to be the largest Islamic financial institution in Qatar, with good liquidity and funding profile, and robust capitalization, along with having solid and stable asset high quality with strong loss absorption capacity, and strong and constant profitability, regardless of the drop in oil prices, and the financial impacts of the pandemic.
The report additionally stated that QIB continues to have robust capitalization in a well-capitalized Qatari banking system, as well as the non-performing financing (NPF) ratio remained moderate over the final seven years, and amongst the many lowest of its peer group.
The report additionally said that QIB’s profitability is strong, and its earnings high quality is good, with the Bank posting constant results. CI added that QIB’s profitability was higher than sector average, supported by the Bank’s broadly stable net financing margins (NFMs), which remained above average, and continued effectivity gains.
Based on the report, QIB has a good liquidity and funding profile, largely funded by buyer deposits, primarily by diversified and stable retail deposits, and with dependence on foreign funding comparatively low, the proportion of nondeposit funding is decrease than different banks in Qatar.
Capital Intelligence affirmed QIB’s solid capitalization and the good high quality of capital, stating that it’s roughly in line with its peer group. Moreover, QIB’s CET-1 ratio is well above the minimal requirement of the QCB based on worldwide requirements (Basel III), whereas its Capital Adequacy Ratio (CAR) comfortably exceeds QCB’s requirements.
Commenting on the rating, Mr. Bassel Gamal, QIB’s Group Chief Executive Officer, said: “The reaffirmation of our ratings by Capital Intelligence emphasizes our profitable enterprise technique and cements our place as one of many main banks in Qatar. QIB maintained a strong monetary place all through the years, and we will proceed to make investments in innovation and develop in line with our enterprise technique and our efficient risk administration framework contributing to the expansion of the native economy.”
QIB’s newest outcomes affirmed its place as one of many main banks within the region. QIB’s net revenue in 2021 amounted to QAR 3,555.3 million, a growth rate of 16% in comparison with 2020. Its assets elevated by 11.2% from QAR 174 billion in 2020 to QAR 194 billion in 2021. Customer deposits grew by 11% reaching QAR 131 billion in comparison with QAR 118 billion in 2020. Moreover, the Bank was able to maintain the ratio of non-performing financing assets to total financing assets round 1.8%, one of many lowest within the banking industry.
QIB operates a common banking mannequin and though it has subsidiaries and companions abroad, the enterprise focus is very a lot on Qatar. The Bank has a home community of twenty-two branches and offices, and over 174 ATMs and CDMs.
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