Fitch Affirms QIB’s (A) Rating/Outlook Stable

9 November 2010
Source : QIB

Fitch Ratings has affirmed Qatar Islamic Bank's (QIB) ratings as Long-term Issuer Default (IDR) ‘A’ with Stable Outlook, Short-term IDR 'F1,' Individual 'C,' Support '1' and Support Rating Floor 'A.'

The Individual Rating (or stand-alone strength) reflects QIB’s position as the leading Islamic franchise with a nearly 50 percent share of Islamic assets and a nine percent overall market share of system assets, in addition to the Bank’s high earnings power from core banking and healthy capital ratios.

Commenting on Fitch’s latest rating, Mr. Ahmed Meshari, QIB Acting CEO, said: “Fitch’s confirmation of QIB’s ‘A’ rating is the result of the high efficiency of the Bank’s strategy during the global financial crisis.”

“During 2010 QIB adopted a strategic plan to remain innovative while overcoming the effects that the global financial crisis had on the region. QIB has strived to achieve goals within the five-year strategic plan adopted by its Board of Directors presided by H.E. Sheikh Jassim Bin Hamad Bin Jabor Al Thani. Having completed almost three years of this plan it better positions QIB to consolidate its growth, structuring a sound and balanced financial position, effective banking risk management, and strengthening business expansion at local and international levels,” he added.

QIB's funding profile has strengthened with the bank successfully issuing a $750m sukuk on October 7, 2010; these funds will be deployed to grow assets. The bank's has also announced a recorded net profit of QR 907 million, and an outstanding operational income of QR 1734 million during the first nine months of 2010. QIB is known for their growing spectrum of innovative products and services, and it is this emphasis on quality that has enabled the institution to achieve assets of QR 44.8 billion by the end of September 2010, which is compared to QR 35.6 billion for the same period of 2009. This impressive leap demonstrates a growth of 26%, and shows that QIB’s local international market share is expanding rapidly. As for the ROAA it reached 3%, while total equity reached QR 8.8 billion by the end of September 2010 delivering an increase of 12% compared to the same period in 2009 where ROAE was 16.1 % (EPS: QR 4.22 share).

QIB is the largest Islamic bank in Qatar, accounting for about 50 percent of the country's Islamic banking assets at end-2009. QIB is also considered one of the biggest financing institutions in the Qatari market with an average of 75% over the past 10 years.