Doha: Qatar Islamic Bank (QIB) announced that Capital Intelligence (CI), the international credit rating agency, raised its Long-Term Foreign Currency Rating (LT FCR) and Short-Term Foreign Currency Rating (ST FCR) to ‘AA-’ and ‘A1+’, respectively with a stable outlook. At the same time, CI Ratings has affirmed QIB’s Standalone Rating (BSR) of ‘a-’. Core Financial Strength (CFS) rating of ‘a-’, and Extraordinary Support Level (ESL) of ‘High’.
Based on the report, the raising of QIB’s LT FCR follows a similar action on the rating of the Qatari Sovereign. The Bank’s ST FCR has also been raised, reflecting the CI mapping between LT and ST FCRs.
The affirmation of QIB’s other ratings reflects its strong financial metrics. Asset quality continues to be good while the Non Performing Financing (NPF) provisions coverage is strong. In 2022, QIB managed to post improved profitability at both the operating and net levels. Moreover, the liquidity profile is generally sound with the already modest reliance on wholesale funding having further declined. Capital ratios are particularly strong.
According to CI’s report, the stable outlook on the LT FCR and BSR indicates that the ratings are unlikely to change over the next 12 months. The LT FCR could be raised by one notch over the next 12 months if QIB’s BSR were to be upgraded, which is unlikely since the Core Financial Strength (CFS) rating is already high.
Bassel Gamal, QIB’s Group Chief Executive Officer, said: “The affirmation of our ratings continues to highlight the success of our business and cements our position as the leading Islamic bank in Qatar.
"We continue to diversify our business despite the challenging and competitive market, and we will continue to invest in innovation as part of our business strategy and risk management framework contributing to the growth of the local economy. We are pleased with the ratings, and we look forward to further improvements and growth.”
QIB recently announced its 2022 financial results delivering a net profit of QR 4,005 m and income of QR 9bn.
