Capital Intelligence Ratings (CI Ratings), the international credit rating agency, yesterday announced that it has affirmed Qatar National Bank’s (QNB) Financial Strength Rating (FSR) at ‘AA-’. The Long- and Short-Term Foreign Currency Ratings (FCRs) are also affirmed at ‘AA-’ and ‘A1+’, respectively, at the same level as the recently reviewed Sovereign Ratings for the State of Qatar (SoQ).
The ratings agency has also announced it has affirmed Qatar Islamic Bank’s (QIB) Financial Strength Rating (FSR) at ‘A’, with a Stable Outlook.
On the QNB, the CI Ratings said the Bank’s Support Rating of ‘1’ (affirmed) reflects the Bank’s role as the financial arm of the Qatari Government. The Outlook on both the Long-Term FCR and the FSR is however raised to Stable, from Negative, in line with the recently raised Outlook on the Sovereign Rating. A further review of QNB’s ratings will take place in March 2019.
With total assets of almost $237bn at the end 2018, QNB was by far the largest bank in the country with a dominant market share, which in terms of total assets is estimated to have remained close to 50 percent of the Qatari banking system aggregate.
Following steady growth, in recent years QNB has consistently ranked first among Mena banks by total assets, loans, deposits, and net profit. The Bank’s international operations have been gradually expanded over the years, both organically and through acquisitions, bringing diversification of risk, as well as new sources of funding and income. QNB now operates what is by some way the widest international network of Branches, Associate Banks and Subsidiaries amongst Mena banks.
On revising the ratings of QIB, the international credit rating agency noted the Bank’s Long- and Short-Term Foreign Currency Ratings (FCRs) are also affirmed at ‘A+’ and ‘A2’, respectively. The Outlook on the Long-Term FCR is raised to Stable, from Negative, in line with the recently raised Outlook on the Sovereign Rating. A further review of QIB’s ratings is scheduled for April 2019.
Qatar Islamic Bank was the first Islamic banking institution to be incorporated in Qatar in 1982. QIB, the leading Islamic Bank in Qatar and the second by total assets in the banking sector ($42.1bn at end 2018), is also one of the largest Islamic banks in the Mena region.
Source from: The Peninsula