Mubasher: Capital Intelligence (CI) has affirmed Qatar Islamic Bank’s (QIB) financial strength rating (FSR) at “A” with a stable outlook.

The international credit rating agency also affirmed the Qatar-based bank's long- and short-term foreign currency ratings (FCRs) at “A+” and “A2”, respectively, a QIB statement to the Qatar Stock Exchange (QSE) showed on Sunday.

These ratings reflect the bank’s generally strong financial profile, QIB said, citing a report by Capital Intelligence, which attributed its rating to the robust growth potential of the Qatari economy as well as the ongoing demonstrated government support for all banks across Qatar.

CI also relied on the bank’s overall good capital adequacy including good asset quality and improved estimated net financing margin and operating profitability.

“QIB now has a liquidity coverage ratio substantially in excess of both current and future regulatory requirements and a good net stable funding ratio, the two ratios to which banks in Qatar increasingly manage their liquidity,” according to the statement.

Moreover, CI’s rating is based on the strength of the Qatari government's balance sheet, which resulted in affirming support rating at “2”.

It is worth noting that Qatar’s economy was affected negatively, especially after the quartet — the UAE, Bahrain, Saudi Arabia and Egypt — boycotted the Gulf member last summer.

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

Last week, Fitch Ratings affirmed QIB's long-term issuer default rating (IDR) at 'A', but with a Negative Outlook.