Qatar Islamic Bank announced that Standard & Poor's credit rating agency has affirmed the bank's credit rating at (A- / A-2), with a stable outlook.
According to the bank's statement to the Qatar Stock Exchange, today, Thursday, the agency raised the bank's global credit rating to the category (bbb) Adequate position instead of (-bbb) medium status.
The agency said that the bank has shown good flexibility in facing the economic challenges that Qatar witnessed in 2020.
and Standard & Poor's expected that the Qatari economy will recover moderately during 2021-2022, after it contracted by 4.4% in 2020 in light of the pandemic.
She added: Despite the challenges that characterized the past year, we expect the quality of Qatar Islamic Bank's assets to be affected only to a limited extent.
The agency indicated that it expects the bank's capitalization to continue to support its credit strength, and that the bank's risk-adjusted capital ratio will stabilize at 13% to 13.5%, compared to 13.4% at the end of 2020.
She added: The bank's financing activities depend mainly on customer deposits (20% of them are from abroad with good geographical distribution according to countries).
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and the agency stated that the bank has benefited from the sukuk market over the past few years to extend the maturity of its obligations. The bank's financing rate reached 118.8% by the end of 2020, and its liquidity remained adequate, whereby about 9% of the assets were placed in the form of liquidity, and another 17%, most of which are in the sukuk of the State of Qatar and murabaha with the Qatar Central Bank.
Standard & Poor's said that its stable outlook for the bank reflects the agency's view that the bank's financial position will remain broadly stable over the next 12 to 24 months, despite Major challenges in the operating environment.
Qatar Islamic Bank profits rose slightly last year by 0.33%, to reach 3.065 billion riyals, compared to 3.055 billion riyals in 2019. < / p>
