Doha 15 May 2012- In a move that reflects Qatar Islamic Bank's sound financial position and business strategy, Standard & Poor's recently assigned its 'A-' long-term and 'A-2' short-term counterparty credit ratings to QIB with a stable outlook rating on the long-term.
S&P, which rates QIB for the first time, hailed the bank's business position, its leading position in the fast-growing Qatari Islamic banking segment and its business model and management.
S&P views QIB's capital and earnings are "strong'. It expects the bank to register strong loan growth and believes its operating margins should largely remain stable, enabling the bank to continue to operate with healthy internal capital generation. It also expects QIB's pre-provision earnings generation to remain healthy in the coming years.
According to S&P, the bank's lending book is predominantly domestic, and therefore directly tied to the domestic environment in Qatar. This is largely in line of its view on the Qatari economy having strong momentum being dependent on oil and liquefied natural gas production and large infrastructure development programs. With regard to industry risk, the banking industry is underpinned by a high and stable share of core deposits, strong efficiency, and recently more stringent lending practices.
The stable outlook reflects S&P expectation that QIB will remain an important player in Qatar.
Last month, Qatar Islamic Bank announced a net profit of QR. 388 million up 20.9% over Q1 2011. The core business of the bank has grown strongly in Q1, leading to a 19.9% increase in Operating income which reached QR. 777 million in the first quarter of 2012 compared to QR. 648 million in the corresponding period last year.
-Ends-
Mohamed Samy
Account Manager
Action Qatar
Part of Action Global Communications Group
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© Press Release 2012
