Fitch Affirms Qatar International Islamic Bank Rating at 'A'

Qatar International Islamic Bank

QNA

Qatar International Islamic Bank (QIIB) announced that Fitch Ratings affirmed the Bank's rating at A with a stable outlook during the agency's periodic review of the Bank's rating in light of its results and performance in the first half of this year.

"QIIBs A rating with a stable outlook has been based on several factors, primarily the solid probability of government support when required, as well as the government's strong capacity and solvency that renders it eligible to provide necessary support," Fitch Ratings said in a report published in its review of QIIBs credit rating.

In its recent report on QIIB, Fitch Ratings noted, "QIIB is distinguished by its good asset quality, strong profitability, adequate seed capital, as well as stable financing and liquidity even as the solid Islamic deposit concession supports the Bank's financial portfolio, which largely consists of domestic retail deposits with a low reliance on external financing."

Moreover, Fitch affirmed that the financing-to-deposit ratio at QIIB is 107%, which is compatible with the domestic market, stating the Banks liquidity coverage and net stable financing towards the end of the first half was convenient at 143% and 117%, respectively.

Fitch further noted that QIIBs profitability criteria are solid compared to its domestic market counterparts due to high profit margins and good cost management as the Bank's operating performance improved in the first half of 2021 compared to the corresponding half in 2020.

Commenting on Fitch's report on the QIIBs rating at this high level, QIIB Chief Executive Officer Dr. Abdulbasit Ahmed Al Shaibei said, "We are proud that QIIB continues to achieve outstanding performance and as a result, prestigious credit ratings. The Bank's efforts and accomplishments are contingent on several factors, mainly the Qatari economy and the opportunities and advantages it offers to various sectors in general and the banking sector in specific."

"Indeed, Fitch's report is of a greater significance than usual in light of the challenges faced by the global economy, mainly the Covid-19 crisis forcing various economic sectors to roll out exceptional measures in response to the repercussions of the pandemic," Al Shaibei added.