Fitch affirms QIIB strong rating at ‘A’ with a stable outlook

Fitch affirms QIIB strong rating at ‘A’ with a stable outlook

DOHA: Global credit rating agency Fitch published the Qatar International Islamic Bank (QIIB)’s full rating report which demonstrating the same QIIB’s strong rating at ‘A’ with a stable outlook.

This is based on the Bank’s financial statements at the end of the third quarter of 2020, which attests to the fact that QIIB has maintained a strong financial position and responded in a suitable manner to the new challenges in line with the high solvency of Qatar’s economy across all sectors.

In its report, Fitch relied on a number of important factors among which is “The extremely high probability of support” from the Qatari authorities in case of need. This reflects the strong ability of Qatar to support its domestic banks combined with QIIB’s strong position in the local financial sector and its creditworthiness, which support its rating”.

In its report, Fitch confirmed, “QIIB has high quality assets with a very low ratio of non-performing financing. The bank was able to maintain a solid profitability and its financial position is supported by the bank’s established Islamic deposit franchise, which comprises domestic retail deposits, with low reliance on external deposits and funding”.

Fitch also noted, “QIIB’s profitability metrics are strong compared with its peers, given sound cost management with a high-quality investment portfolio and a significant decrease in the bank’s risk indicators”.

Commenting on Fitch report on the Bank’s rating, QIIB Chief Executive Officer, Dr Abdulbasit Ahmed al-Shaibei said, “We are very happy with this recent rating report for many reasons, the most important of which is that this proves of our success in dealing with and facing various market factors and risks during the past period, which has witnessed a lot of fluctuations at the global level.

“However, our reliance on the local market and Qatar’s strong economy have proved useful and effective. Qatar’s economic strength are backed by figures and facts, and are the best- regionally and internationally”.

He said, “Our strategy has been based on reinforcing the bank’s financial position in the face of various risks while concentrating on leveraging operational competence and expediting digitisation in line with the new trends and requirements in the financial market and the latest solutions that meet customers’ requirements and align with their expectations for swift banking services that are reliable, effective and flexible”.

The QIIB CEO said, “The strategy approved by the Bank’s board focus mainly on the local market and the cooperation with different economic sectors in the country. This is central to our strategy. Qatar’s economy provides numerous opportunities to various sectors including the banking sector. This helps Qatar’s banking sector reinforce its position and achieve sustainable growth with the lowest estimated risk levels”.

He stressed, “In the upcoming phases, QIIB will continue implementing its strategy, both in the short and long term. This, we are optimistic, will help improve our Bank’s key financial indicators and provide a world-scale banking experience to our rapidly growing retail and corporate customers”.

At the end of the third quarter (Q3-2020), QIIB achieved a net profit of QR785mn, while the bank’s total assets amounted to QR59.3 bn and the financing portfolio stood at QR39.2bn.

In addition, the QIIB’s deposits reached QR36.8 bn and earnings per share stood at QR0.52, whereas the capital adequacy ratio under Basel III was 17.2%.

QIIB was established in 1990 as the second Islamic bank in Qatar and it is currently the third-largest bank listed in Qatar Stock Exchange(QE) in terms of assets and market value . The Bank provides comprehensive banking services to its customers through a wide network of branches located across the country.

In addition, QIIB was able to establish an advanced technological infrastructure and alternate channels that scaled up the services provided by the Bank to a new level. The Bank has also diverse regional and international partnerships.

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