Mubasher: Fitch Ratings has affirmed Qatar Islamic Bank’s (QIB) long-term issuer default rating (IDR) at 'A', with a Negative Outlook.

The rating reflected the bank’s robust and well-established franchise in Qatar, as QIB acquired around 10% of the market’s total assets by the end of 2017, according to the sharia-compliant lender's statement to the Qatar Stock Exchange (QSE) on Thursday. 

Moreover, the rating was also ascribed to QIB's adequate profitability, sound asset-quality metrics, satisfactory capital ratios and sufficient liquid assets, Qatar's largest bank by assets said.

Over the course of the last year, QIB posted sound financial performance, backed by an improvement in its net financing margin.

“QIB's depositor base is more diversified than many of its peers and includes a strong retail component, which has historically been stable. QIB's depositor base comprises a moderate share of foreign deposits,” Fitch’s report showed.

The international agency noted that its rating based on Qatar’s ability to support banks after the government showed a strong commitment to its financial institutions and key public sector companies.

For the full-year 2017, QIB’s profits grew 11.6% to QAR 2.405 billion, compared to QAR 2.155 a year earlier.

By 10:20 am Qatar time, QIB’s stock declined 1.77% at QAR 103.50.