Dr. Al Shaibei: We owe this high rating to Qatar’s Strong Economy
QIIB announced that Fitch Ratings has affirmed the bank’s “IDR” at “A-” and revised QIIB outlook from stable to positive.
Fitch noted that the change of QIIB outlook is based on Qatar’s strong economy and its ability to achieve more opportunities and growth in various sectors, including the banking sector, and the government is able to provide support for the bank when needed.
With regards to the affirmation of QIIB rating, Fitch Ratings reaffirmed in its periodic report issued last September that: “QIIB rating at ‘A-’ is based on a number of reasons related to the bank and its indicators or the bank’s environment, with sound asset quality, adequate core capitalization, stable funding, and liquidity. The strong Islamic deposit franchise is supported by the bank’s financing profile, which consists mainly of local retail deposits with very low reliance on external funding”.
Fitch also noted that QIIB's profitability metrics are stronger than its direct peers' owing to its high margins and privileges. The bank’s position is also strengthened by good cost management with the improvement in the operating environment since 2021.
On the occasion of announcing the rating, Dr. Abdulbasit Al Shaibei, QIIB Chief Executive Officer, said: “Certainly, we are very pleased with this recognition of QIIB’s position. The revised QIIB outlook from stable to positive confirms that we are moving in the right direction, our indicators are strong, our steps are well-thought-out, and the policies we follow get the desired results.”
He went on by saying: "We owe this progress and this high rating to Qatar’s strong economy which provides all sectors, including the banking sector, with a safety umbrella with high credibility and reliability, and offers growth opportunities that are among the best regionally and internationally."
He added, "We continue to work according to a strategy that focuses on the local market and invests in available opportunities. As for foreign investment opportunities, we manage them according to a highly efficient risk policy, which was clearly reflected in our indicators that were recognized by various credit rating agencies, the latest of which was Fitch Ratings, which upgraded the bank’s outlook from stable to positive”.
Dr. Al-Shaibei confirmed: “QIIB will continue to work to strengthen its financial position and respond to competition factors and other factors in the market, while paying special attention to achieving more progress in the field of operations efficiency, by enhancing the role of technology and digital transformation, in line with the best internationally approved standards”.