Doha, August 23 (QNA) – Qatar Islamic Bank (QIB) has received an A rating (indicating a stable outlook ) for its long-term Issuer Default Rating (IDR) from internationally-renowned ratings agency Fitch. Additionally, its Viability Rating (VR) is rated at bbb .
QIB achieved the A rating in its headline IDR last year, and retains this rating for 2012. This is testimony to the solidity of the bank overall in what remain uncertain economic conditions worldwide, a press release posted on Qatar Exchange website said.
Fitch also recognises that the Qatari government has a history of both willingness and ability to support its banks, which also has a positive influence on the Bank’s rating.
The Bank’s VR reflects its healthy capitalization, steady earnings, strong asset quality ratios, solid stock of liquid assets, rising financing/deposit ratio and established franchise in Qatar s sound operating environment.
QIB’s core earnings showed solid growth over the last 12 months, up almost 18% year on year on the back of strong volume growth, which also boosted fee and commission income. Margins remain healthy and relatively stable, which Fitch expects to continue for the remainder of this year.
Fitch also expects net income to remain healthy for the rest of 2012 and expects QIB to benefit from the introduction by the Qatar authorities of regulation prohibiting commercial banks from carrying out Islamic Financing.
QIB s holding of available cash and balances with central banks plus interbank deposits and substantial holding of Qatar government securities provides the Bank with a stock of liquid assets while capitalization levels remained high.
QIB was established in 1982 as a Qatari shareholding company in order to provide banking services in accordance with the provisions of Islamic Shari’a and as per the regulations of Qatar Central Bank (QCB).