Business & Finance Group - Finacen & Investment - Doha: Qatar Islamic Bank (QIB) has received an ‘A’ for long- term foreign currency; ‘A2’ for short-term foreign currency; and ‘A’ for financial strength (stand-alone financial health) from international credit rating agency Capital Intelligence (CI).

All ratings have been designated with a ‘Stable’ outlook for the coming 12-month period. Additionally, CI has affirmed a Support rating of two for QIB, assessing as very high the likelihood that the bank would receive external support in the event of financial difficulties.

Capital Intelligence is the leading credit agency in the world’s emerging markets and has been providing credit analysis and ratings since 1985. The agency now rates over 400 financial entities and instruments in 39 countries, including across the Middle East.

The ratings awarded to QIB reflect the support of the country’s banking system recently demonstrated by the Qatari government, which has enabled the Bank to maintain its solid capital adequacy and overall sound financial condition, along with its strong franchise and profitability.

CI has confirmed that QIB’s capital adequacy remains strong following equity subscribed in 2009 by the Qatar Investment Authority (QIA) as part of the Qatari government support for the country’s banks.

QIB’s liquidity improved in 2009, albeit moderately, as growth in total assets eased, while the Bank kept up a good rate of growth in its customer deposits. Income from financing activity, underpinned by the Bank’s low funding costs and strong profit sharing differential, grew at a very good pace, despite the lower income from securities and property trading. CI further confirmed that QIB remains cost efficient.

The position of QIB as one of the largest Islamic Banks in the world is soundly supported by these ratings, confirming that customers’ trust in the Bank is well-placed, in addition to attesting to QIB’s ability to moderately and efficiently develop, manage and control its balance sheet.

Besides, these ratings provide verification of the efficacy and responsibility that has been demonstrated by the Islamic banking industry, as well as being a testament to the robustness and continuing rapid growth of the Qatari economy, despite the effects of the global financial crisis.

QIB’s CEO, Salah Al Jaidah, said of the CI ratings, “QIB’s solid ratings provide absolute confirmation of the success with which the Bank has applied the strategy adopted as a counter measure to the effects of the global economic crisis, and in which it was assisted by the strong support provided by the State of Qatar for its finance and banking sectors.”

“QIB has been able to progress confidently towards accomplishing the objectives laid down in our 5-year (2008-2012) strategic plan, as adopted by the Board of Directors. This strategic plan aims to enhance the Bank’s growth, by building a stable and strong financial institution and incorporating effective risk management principles.”