Dr. Al-Shaibei: Our strong financial position is derived from Qatar's robust economic foundation and the wise policies of Qatar Central Bank.
QIIB announced that global credit rating agency Fitch has affirmed its rating at “A-”with a positive outlook, as stated in its periodic report on the bank.
It's worth noting that Fitch had upgraded the bank's outlook from “stable to positive” in April of this year.
Fitch's new report emphasises that its affirmation of QIIB's rating has been based on several key factors, including the bank's financial stability, solid position, sufficient core capital, asset quality, reasonable profitability, and stable funding.
The report highlights that Islamic QIIB's profitability metrics are stronger than its direct competitors, based on high profit margins and effective cost management. Also, the bank’s funding primarily relies on customer deposits, a substantial portion of which comes from individuals or the retail sector, resulting in a lower concentration in deposit base compared to domestic competitors.
Furthermore, QIIB’s dependence on external funding is also lower than its counterparts. Not to mention, the bank possesses a significant stock of liquid assets that support its financial position.
QIIB Chief Executive Officer Dr. Abdulbasit Ahmed al-Shaibei commented on Fitch’s report, "We are pleased with Fitch's affirmation of QIIB's outstanding financial position within the Qatari banking sector undoubtedly, our robust financial position is derived from Qatar's strong economic foundation, which provides the necessary support and conducive opportunities for the prosperity of various business sectors, particularly the banking sector. Furthermore, we are indebted for our strong position to our commitment to the wise policies, regulations, and directives issued by Qatar Central Bank."
He noted, "Fitch's global credit rating of 'A-' with a positive outlook is a validation and recognition of the bank's sound strategy and direction. It is also evidence of our success in addressing various challenges and maintaining a comfortable growth rate that ensures continuous progress and the best possible response to our clients' expectations."
Dr. Al-Shaibei expressed confidence that QIIB will continue to strengthen its financial position, leveraging opportunities in the local market as the primary and essential choice. Moreover, the bank will explore external opportunities with superior returns and lower risks.
It's worth noting, that global credit rating agency Moody's confirmed QIIB's rating at ‘A2’ with a stable outlook in June of 2022.
Another global credit rating agency Capital Intelligence also upgraded the bank's long-term rating to ‘A+’ with a stable outlook in February of this year.