27-11-2020
Standard & Poor's (S&P) affirmed the credit rating of Qatar Islamic Bank (QIB) at A- / A-2 with a stable outlook.
Standard & Poor's said that its classification of the bank reflects its view of the bank's strength within the banking sector, its leadership position in Qatar as the largest Islamic bank in the country, as well as the bank's relatively conservative policy.
"We expect coverage of troubled financing with provisions to continue surpassing 150% over the next three years," S&P added. We still view the bank's capitalization as a strong haven against domestic fluctuations. Primary customer deposits dominate the bank's financing and 20% of it is sourced from abroad, with good diversification by country. Standard & Poor's also described its stable outlook for the bank as "reflecting the agency’s view that the bank’s financial position will remain broadly stable over the next 12 to 24 months, despite the major challenges in the operating environment."
Commenting on Standard & Poor's rating, Mr. Basil Jamal, Chief Executive Officer of the Bank Group, said: “We are pleased to confirm that Standard & Poor’s Agency has classified the bank at this level. The confirmation of our rating, and despite the current global challenges, is a proof of the strong financial position of the State of Qatar, the outlook for the banking sector in the country and the financial strength of Qatar Islamic Bank, which is continuously improving in line with our long-term goals. These ratings are also a strong confirmation of the bank’s success in maintaining its stability and business model, as well as the quality of its assets and its strong financial standing under all potential challenges. ”
Mr. Basil added, "The bank is committed to the highest standards of work, and we will continue our work to implement our long-term business strategy, and to focus on contributing to the development of the national economy, with constant readiness to deal with any potential challenges."
The bank recently announced the results for the nine-month period ending on 30 September 2020, as it achieved a net profit of 2.21 billion riyals for the nine-month period ended 30 September 2020.