DOHA: Ratings agencies Fitch and Capital Intelligence have affirmed QIIB’s ratings at ‘A’, reflecting the bank’s strong financial position, QIIB announced yesterday.
Fitch based QIIB’s Long-Term Issuer Default Rating (IDR) at ‘A’ reflect Fitch’s expectation of an extremely high probability of support from “the government’s in case of need, in comparison to previous cases, where the government has shown strong commitment to the banking sector and key public sector companies, especially as the state is able to support the banking sector backed by its large sovereign reserves and revenues”.
Fitch noted that “QIIB has a stake in the local Islamic banking segment, reaching 13 percent by the end of 2017 and a considerable strength, especially in the retail segment. The bank is looking to eventually expand its franchise internationally and recently established a bank in “Morocco”.
In addition, the bank maintains a strong capital adequacy ratio at 17.9 percent and Liquid assets accounted for a high 28 percent of deposits at end-2017.
Capital Intelligence said that it has based QIIB’s financing strength rating (FSR) rating on “the strength of capital adequacy and the healthy growth of the bank’s profits, which confirms its firm position that can be strengthened at the medium term with the opening of a bank by QIIB in Morocco”.
The CI agency confirmed that “the rating is also based on the fact that the QIIB funding was largely from domestic sources, direct impacts from the blockade were minimal, especially in view of the strong liquidity support from the government for the sector as a whole”.
Commenting on Fitch and CI ratings, Dr Abdulbasit Ahmed Al Shaibei (pictured) QIIB’s CEO, said, “Affirmation of QIIB credit rating is a natural reflection of the strong confidence in the Qatari economy and its remarkable success in facing the blockade with all its ramifications and effects.”
“QIIB is an active part of the Qatari banking sector and actively contributes to the projects’ development and financing programs of all kinds.
“Therefore, the emphasis of the credit rating agencies on the strength of the Bank’s position is a recognition of the fact that we are on the right track and achieve the strategic and progressive objectives of the plan we are implementing under the directives of HH the Emir, Sheikh Tamim bin Hamad Al Thani” he added Dr Al Shaibei noted,
“Although 2017 was the year of challenges, it also had a special nature, as we faced unforeseen developments and risks, adapted to different market factors, achieved better growth than in the previous years.
“We also implemented major development plans at the local level in restructuring our branch network besides developing our alternative channels. The year 2017 witnessed the official launch of our expansion in the Kingdom of Morocco through the opening of Umnia Bank, which is the result of a partnership between QIIB and CIH”.
