Doha: Fitch Ratings has affirmed Qatar Islamic Bank's (QIB) ratings as Long-term Issuer Default (IDR) 'A' with Stable Outlook, Short-term IDR 'F1,' Individual 'C,' Support '1' and Support Rating Floor 'A.'
The Individual Rating (or stand-alone strength) reflects QIB's position as the leading Islamic franchise with a nearly 50 percent share of Islamic assets and a nine percent overall market share of system assets, in addition to the Bank's high earnings power from core banking and healthy capital ratios.
Commenting on Fitch's latest rating, Ahmed Meshari, QIB Acting CEO, said: "Fitch's confirmation of QIB's 'A' rating is the result of the high efficiency of the Bank's strategy during the global financial crisis."
"During 2010 QIB adopted a strategic plan to remain innovative while overcoming the effects that the global financial crisis had on the region. QIB has strived to achieve goals within the five-year strategic plan adopted by its Board of Directors presided by Sheikh Jassem bin Hamad bin Jabor Al Thani. Having completed almost three years of this plan it better positions QIB to consolidate its growth, structuring a sound and balanced financial position, effective banking risk management, and strengthening business expansion at local and international levels," he added.
QIB's funding profile has strengthened with the bank successfully issuing a $750m Sukuk on October 7, 2010; these funds will be deployed to grow assets. The bank's has also announced a recorded net profit of QR907m, and an outstanding operational income of QR1734m during the first nine months of 2010. QIB is known for their growing spectrum of innovative products and services, and it is this emphasis on quality that has enabled the institution to achieve assets of QR44.8bn by the end of September 2010, which is compared to QR35.6bn for the same period of 2009. This impressive leap demonstrates a growth of 26 percent, and shows that QIB's local international market share is expanding rapidly. As for the ROAA it reached three percent, while total equity reached QR8.8bn by the end of September 2010 delivering an increase of 12 percent compared to the same period in 2009 where ROAE was 16.1 percent.
© The Peninsula 2010
