Fitch Ratings has affirmed Qatar International Islamic Bank (QIIB) PJSC’s long-term issuer default rating at “A” with a stable outlook, indicating the bank’s strong indicators and solid financial position.
Fitch confirmed in its report in which it confirmed the bank’s rating: “It relied on a number of data, including: the bank’s established banking franchise in the field of Islamic banking services, the bank’s enjoyment of strong asset quality and profitability, with stable liquidity, and less reliance than its peers on non-resident financing.”
The Fitch report explained: “The operating conditions are good in the bank, as the bank maintained the quality of its financing portfolio with a coverage ratio for non-performing debts at 95% at the end of the first quarter of 2024, which is considered one of the distinguished ratios compared to its peers among local banks. It is also expected that the International Islamic will maintain strong profitability with operating efficiency, in addition to the fact that it is expected to continue to maintain stable financing mainly from customer deposits, which is a strength for the bank compared to its local peers. This is in addition to another strength represented by the International Islamic’s reliance on external financing less than its peers in the local banking sector.”
Fitch also indicated in its report: “The International Islamic Bank’s rating at ‘A’ with a stable outlook is based on a solid foundation of potential support from the government if needed, with the government’s ability to do so, especially since the sovereign rating of the State of Qatar is at AA with a stable outlook.”
His Excellency Sheikh Dr. Khalid bin Thani bin Abdullah Al Thani, Chairman of the Board of Directors of the International Islamic Bank, said that the high rating with a stable outlook is an affirmation of the strength of the bank’s financial position and the merit of its distinguished performance, adding, “We always emphasize that we owe the strength of our position and the stability of our indicators to the solid position enjoyed by the Qatari economy, which provides a comprehensive support umbrella for various sectors, and is also full of rich opportunities that always give us reasons for growth and achieving distinguished financial positions.”
For his part, Dr. Abdulbasit Ahmed Al-Shaibi, CEO of the International Islamic Bank, said on the occasion of Fitch affirming the bank’s rating, that the rating is an acknowledgment that the bank is moving forward on the right path, and that it is able to face various challenges and transform them into opportunities.