Dr. al-Shaibei: Moody's rating confirms our financial strength and alignment with Qatar's economic position

Moody's Investors Service has affirmed “QIIB” long-term ratings at (A2/Prime-1) with a stable outlook.

This indicates the bank's strong indicators and its reliance on valuable self-objective factors.

Moody's affirmation of QIIB’s long-term ratings highlights the bank's strong profitability, with a 2.1% return on assets for the first three months of 2023, supported by its Islamic banking excellence and exceptional cost efficiency (cost-to-income ratio of 19.1% for the first three months of 2023).

Moody's also noted the bank's reduced reliance on market funding, which decreased to 17% (as of March 2023) from 29% (as of December 2019), combined with the bank's strong liquidity and solid asset quality.

The agency explained that the stable outlook for the bank's long-term ratings reflects Moody's expectation that the bank will maintain its strong profitability, capital, and liquidity in the face of risks.

Moody's further indicated that QIIB 's high rating is supported by the ongoing expectation of a highly probable government support when needed, relying on the government's contribution to the bank and the strong track record of preventive support for all local banks by the Qatari government in the past.

QIIB chief executive officer Dr. Abdulbasit Ahmed al-Shaibei commented on Moody's affirmation of the bank's rating at (A2) with a stable outlook, stating, "We are pleased with this rating and high evaluation from Moody's, as it confirms our financial strength and alignment with Qatar's renowned regional and international economic position. We are indeed indebted to our elevated ratings, which reflect the exceptional standing and strength of the Qatari economy."

He noted, "Moody's rating of QIIB gains additional significance this time, considering the unusual circumstances experienced by global markets and the uncertainties faced by many financial institutions worldwide, resulting from the global economic conditions and the high inflation in several countries, as well as the geopolitical challenges that disrupted supply chains, which have not fully recovered from the impact of the Covid-19 pandemic and led to an increase in the cost of goods, negatively impacting the markets."

"Moody's affirmation on QIIB’s rating clearly shows that we have largely succeeded in facing emerging challenges and market volatility, achieving positive results across various indicators based on the implementation of our strategic and phased plans approved by the Board of Directors. These plans have always focused on the domestic market and risk management through a careful policy that shielded us from any undesirable consequences."

He noted, “QIIB has also continued to improve its performance and enhance operational efficiency through decisive steps in digital transformation. These have resulted in tangible results seen in the bank's indicators, earning the satisfaction of customers from various segments, leading to an expansion of our customer base."

QIIB chief executive officer expressed confidence that the exceptional trends identified in Moody's report on the bank will continue to elevate the bank's financial position and various budget items in the coming period.

“This confidence is based on the exceptional efforts exerted and the utilisation of strong factors and opportunities provided by the local business sector, as well as the optimistic expectations regarding the direction of Qatar's economic growth in the upcoming phase.”