Qatar Islamic Bank has said Moody’s Investors Service assigned a first time rating of ‘A1’ with stable outlook to QIB’s local and foreign currency deposit.

Moody’s, one of the top three rating agencies in the world, cited that the bank has “solid asset quality, sound capital buffers, good profitability, underpinned by its established and growing” retail and corporate Islamic banking franchise.

QIB was able to maintain the ratio of non-performing financing assets lower than the local market average and total capital adequacy of the bank is higher than the regulatory minimum requirements prescribed by Qatar Central Bank and Basel Committee.

According to Moody’s, QIB’s growth will reflect the increasing penetration of Shariah-compliant assets in Qatar, as well as the bank’s continued implementation of its strategy to be the leading private sector bank.

In addition to the ‘A1’ long-term deposit rating, Moody’s has also assigned a short-term rating of Prime-1 local and foreign currency deposit ratings, baa2 baseline credit assessment (BCA) and a baa2 adjusted BCA.

Furthermore, Moody's has assigned a Counterparty Risk Assessment (CR Assessment) of Aa3(cr)/ Prime-1(cr).

“Being assigned this positive rating by Moody’s underscores and recognises the quality and strong position of QIB in Qatar and GCC banking sector,” said QIB Group chief executive officer Bassel Gamal. “The ratings affirm the bank’s success in pursuing our long-term growth and performance objectives and speak to the strength of Qatar’s economy and the banking sector.”

“We continue to enjoy one of the highest ratings in the banking sector in Qatar and with the addition of Moody’s, we have widen our coverage base being now rated by all the main international rating agencies: Moody’s, Fitch, S&P and Capital Intelligence. Our ratings reflect the successful implementation of the Bank’s strategy, prudent financing policies, and our disciplined approach to risk management,” Gamad added.

QIB’s profit grew by 12.8% reaching QR555mn for three months ending on March 31, 2017 compared to the same period last year. QIB assets currently stand at QR143bn, having grown by 9.1% on a year on year basis. Financing activities have reached QR99.5bn, up 9.3% on March 2016.

Total Income reached QR1.28bn during the same period last year, registering a growth of 16.3%.