S&P affirms QIB rating at A-

05/04/2018 07:48 AST

Standard & Poor's (S&P) has affirmed QIB's Issuer Credit Rating at A-, Qatar's leading Islamic bank has said in a release. According to S&P, the major contributing factors strengthening QIB's rating include the bank being the largest Islamic bank in Qatar and second-largest player in the market, its sound financial performance, and strong capitalisation.

S&P said, "The rating reflects our views of the bank's robust corporate banking franchise and favourable position as Qatar's largest Islamic Bank. QIB's capital is strong and supports the bank's rating. QIB's funding profile is now more balanced, since the bank replaced deposits from GCC countries with core deposits from government and government-related entities in Qatar. QIB's stable funding ratio reached 113.9% in end-2017. The bank's liquidity is also adequate with around 7% of assets placed in liquid forms and another 20% placed mostly in Qatari government sukuk."

QIB Group CEO Bassel Gamal said, "The rating affirms the bank's success in successfully implementing our long-term growth and performance objectives and speak to the strength of the banking industry in Qatar."

"QIB continues to record steady, healthy growth across all key performance indicators." "In keeping with the bank's long-term growth strategy, QIB is continuously pursuing new means to deliver real value to all its stakeholders while adhering to the highest ethical standards," Gamal added.

QIB has demonstrated steady financial growth over the past five years and has been setting a benchmark for Islamic banks in the region with its embracing cutting-edge banking technologies, customer-centric approach to both its product offering and the overall banking experience; the bank has also been constantly developing digital channels. QIB's 2017 financial results showed a net profit of QR2.4bn, up 11.6% on QR2.15bn in 2016.

Total assets increased by 7.5% compared to 2016 and stood at QR150bn in 2017. Established in 1982, QIB was the first Islamic bank in Qatar. Today, it is the second largest bank, and largest Islamic bank in the country, with a market share of approximately 11% in terms of total assets as of end 2017.

The bank provides Shariah-compliant products and services to corporates and individuals primarily in Qatar.

Gulf Times