DOHA: Qatar Islamic Bank (QIB) has been reaffirmed by international credit ratings agency, Capital Intelligence (CI), with a Financial Strength Rating (FSR) of ‘A’ in its latest report issued in April 2014, which also stated that the Outlook on the FSR had been changed to ‘Stable’ in view of the significant improvement in financing asset quality and stabilised Return on Average Assets (ROAA).
Cyprus-based Capital Intelligence has been providing credit analysis and ratings for the past three decades, and now rates over 400 banks, corporates and financial instruments (bonds and sukuk), including Islamic institutions, in 37 countries.
The Bank’s Long and Short-Term Foreign Currency Ratings (FCR) were also re-affirmed by CI at ‘A’ and ‘A2’, respectively, with a ‘Stable’ outlook in view of the Bank’s intrinsic financial profile, Qatar’s economic growth potential, and ongoing government support for all Qatari banks. Based on the strength of the Qatari government balance sheet, the Support Rating was re-affirmed at ‘2’.
CI said QIB’s FSR was supported by the Bank’s low leverage and good capital adequacy ratios, as well as by improved liquidity, which have benefited from more efficient use of capital and sustained growth in customer deposits. Growth in credit risk weighted assets was contained through measured growth in financing, while market risks were reduced through more centralised risk management and sale of investment properties – allowing the Bank to improve its capital adequacy ratio, which stands at a good level in both absolute and relative terms.The Peninsula
