International rating agency 'CI' affirms QIB at (A)

At the same time CI has raised QIB's support rating to 2 from 3 on the basis of the strength of Qatar´s 'AA-' (AA minus) sovereign rating and in view of the Qatari government's demonstrated strong support for the country's banking system. All ratings carry a 'Stable' outlook. At the same time the financial strength rating was affirmed to (A) and outlook stable.

CI has stated that these ratings are based on the fact that QIB is the leading Islamic bank in Qatar with a growing share of the market. Its financial strength is underpinned by good asset quality, strong capitalisation and very high profitability.

QIB's net profit sharing differential is the highest and its cost/income amongst the best in CI's peer group of Qatari banks. Sources of non-profit sharing income are diversified and this has enabled QIB to achieve high rates of growth in net profits. The report also demonstrates that QIB's customer deposit funding has enabled it to strengthen liquidity in 2009 from year end levels which had tightened because of strong growth in financing activity.

The Bank has also benefited from the government's plan to purchase part of Qatari banks' real estate portfolios in May of this year. However, though improving in 2009, liquidity is likely to constrain high rates of balance sheet growth.