Capital Intelligence (CI) Ratings has affirmed QIIB’s high rating at (A), with a stable outlook, praising the high solvency of the bank.
In its periodic report that analyses QIIB’s financial indicators, the agency clarified that it is affirming the bank’s long-term rating “LT FCR” at (A) and short-term rating “ST FCR” at (A1).
Capital Intelligence’s rating was based on the bank’s outstanding asset quality, strong stake in the local Islamic banking retail sector, good and consistent profitability and better than the average return on assets (ROAA).
Also, capital adequacy for QIIB is well above QCB’s required minimum, and the bank has a strong deposit base that strengthens its position in addition to the high likelihood of extraordinary government support if required.
The report said, “QIIB maintains comfortable liquidity and funding profile with a minimal share of non-domestic deposits. The bank’s financing portfolio is of high quality, supported by a strong risk mitigation strategy since as the bank benefits from continued operating efficiency gains.”
Furthermore, the report said, the bank’s non-performing financing ratio supersedes its peers and is fully covered by its financing loss reserves.
Commenting on the Capital Intelligence’s rating of the bank, QIIB CEO Dr Abdulbasit Ahmed Al Shaibei said, “This high rating is primarily due to the abundant opportunities provided by the Qatari economy to the various business sectors, especially the banking sector, where the boom in projects and financing is strongly reflected on the bank’s portfolio, its activities and its ability to achieve targeted growth rates and stable operations on the long term.”
He said, “We are very pleased with this prestigious (A) rating and stable outlook from Capital Intelligence Rating, which proves that QIIB was able to adapt to the new developments and market challenges. QIIB was able to maintain its various indicators, develop its work methods and do all the necessary to achieve the best possible performance despite all circumstances.”
He said, “The Capital Intelligence report on QIIB rating clearly indicates that the bank was able to strengthen its financial position and improve its various indicators despite the impact of the pandemic. Moreover, the bank improved its operational efficiency in such exceptional circumstances, which, in itself, is a qualitative development. We will continue to work on this matter and its development to achieve the best-desired results.”
Shaibei said, “During the last period, the bank made notable progress in a vital field, which is digital transformation, as most of the bank’s services and products became available through digital channels, including many financing services, which is considered a great accomplishment for the bank. We are striving to remain on this path and to continuously develop it, so as to achieve the highest possible operating efficiency and provide the best services and products to our ever-expanding customer base.”
It is worth noting that Fitch Ratings recently confirmed QIIB’s strong rating at “A”, while Moody’s Credit Rating Agency confirmed QIIB’s rating at (A2) with a stable outlook.