IBQ earns A+ rating from Fitch
Fitch officials forecast that all highly-rated Qatari banks will get any needed support from the government or other sources.
IBQ is one of Qatar's oldest banks. Its franchises are focused mainly on domestic private banking. Its loans are made mostly to domestic companies in both the public and private sectors.
In assigning its rating, Fitch found the risks on IBQ's loan books were well-managed and that any risks are mainly government-related. The bank was also found to be well-collateralized. Its asset quality metrics and loan impairment charges were in line with banks of like size.
"We expect the bank's concentrations to improve modestly as it implements its growth plans," a Fitch release said. "Profitability ratios are sound and reflect a favorable business environment. Capital ratios compare well with peers, but Fitch considers a high level of capital to be necessary in view of the above-average loan book concentration. Fitch also expects capitalization to weaken with the bank's asset growth, but to remain sound. Liquidity is sound but funding is very highly concentrated, more so than for most peers."
For more information, visit www.fitchratings.com.