Fitch affirms QIIB’s rating at A with stable outlook

Tribune News Network Doha Qatar International Islamic Bank (QIIB) on Saturday announced that Fitch Ratings has affirmed the bank’s rating at ‘A’ with a sta...

Tribune News NetworkDohaQatar International Islamic Bank (QIIB) on Saturday announced that Fitch Ratings has affirmed the bank’s rating at ‘A’ with a stable outlook during the agency’s periodic review of the bank’s rating in light of its results and performance in the first half of this year.“QIIB’s ‘A’ rating with a stable outlook has been based on several factors, primarily the solid probability of government support when required, as well as the government’s strong capacity and solvency that renders it eligible to provide the necessary support,” Fitch Ratings said in a report published in its review of QIIB’s credit rating.In its recent report on QIIB, Fitch Ratings noted that QIIB is distinguished by its good asset quality, strong profitability, adequate seed capital, as well as stable financing and liquidity even as the solid Islamic deposit concession supports the bank’s financial portfolio that largely consists of domestic retail deposits with a low reliance on external financing.Moreover, Fitch affirmed that the financing-to-deposit ratio at QIIB is 107 percent, which is compatible with the domestic market, stating the bank’s liquidity coverage and net stable financing towards the end of the first half was convenient at 143 percent and 117 percent respectively.Fitch further noted that QIIB’s profitability criteria are solid compared to its domestic market counterparts due to high-profit margins and good cost management as the bank’s operating performance improved in the first half of 2021 compared to the corresponding half in 2020.Commenting on Fitch’s report on the bank’s rating at this high level, QIIB CEO Abdulbasit Ahmed Al Shaibei said, “We are proud that QIIB continues to achieve outstanding performance and as a result, prestigious credit ratings. The bank’s efforts and accomplishments are contingent on several factors, mainly the Qatari economy and the opportunities and advantages it offers to various sectors in general and the banking sector in specific.”Indeed, Fitch’s report is of greater significance than usual in light of the challenges faced by the global economy, mainly the COVID-19 crisis forcing various economic sectors to roll out exceptional measures in response to the repercussions of the pandemic.Shaibei further stressed that QIIB has succeeded in turning challenges into opportunities, in addition to strengthening its operational efficiency in the face of the unforeseen risks and developments.“The reality is that the bank has leveraged innovative strategies and updated its business model in its march towards digital transformation. It intensified efforts and accelerated implementation processes while maintaining the highest quality of its services. Additionally, QIIB’s customers have seen a paradigm shift in banking services by providing most banking products and services, including personal finance, without the need to visit the branch,” he said.“As a result of this quantum leap in the bank’s operations, the customer base has expanded significantly, and the demand for various financing products offered by QIIB has consequently increased, which has boosted the growth of our operations. The steady progress in implementing the digital transformation has also strengthened the bank’s operational efficiency considerably. this has been reflected in various aspects of the bank’s overall performance,” he stated.Shaibei said that QIIB will continue to consolidate its financial position, achieve targeted growth indexes and provide the best services in the Islamic banking market, while actively contributing towards innovating banking solutions that meet customers’ aspirations and boost returns to shareholders.QIIB was established in 1990 as the second Islamic bank in Qatar and it is currently the third-largest Islamic bank listed on Qatar Stock Exchange in terms of assets and market value.QIIB provides comprehensive banking services to its customers through a wide network of branches located across the country.In addition, the bank has succeeded in establishing an advanced technological environment and alternative channels that have leveraged the banking services provided to a new level. The bank has diverse regional and international partnerships.