Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Ahli Bank Qatars Long-Term Foreign Currency and Financial Strength Ratings Upgraded, on Stable Outlook  Join our daily free Newsletter

MENAFN Press - 17/12/2013

No. of Ratings : 0
Add to Mixx!


 


(MENAFN Press) Capital Intelligence (CI), the international credit rating agency, announced today that it has raised Ahli Bank QSC (ABQ)'s Long-Term Foreign Currency (FC) Ratings to 'A' from 'A-', on the basis of the Bank's strong credit profile and the increased ownership interest held by Qatar government entities (47.06%). The Short-Term FC Rating is affirmed at 'A2'. The Support Level is raised to '1' from '2', denoting the extremely high likelihood of support from the Bank's strong government shareholders, as well as from the Central Bank of Qatar. In view of ABQ's improved asset quality, ongoing strong profitability and solid capital adequacy, CI raises the Financial Strength Rating (FSR) to 'A-' from 'BBB'. The FSR is constrained by ongoing concentration risks in loans and customer deposits, as well as the Bank's comparatively small balance sheet. The Outlook for all the Ratings is 'Stable'.

ABQ underwent a significant change in ownership in January 2013 after the Qatar Foundation (a trust) purchased the 29.41% ownership interest of Ahli United Bank (AUB) based in Bahrain. Qatar Foundation, together with Qatar Investment Authority, now control close to one-half of the Bank's shares thereby ensuring a strong degree of financial support. ABQ had been run by AUB under a management agreement over the past. The newly constituted board has since appointed a former CEO to manage the Bank.

Although ABQ ranks among the smallest banks in the local market, it has nonetheless built and developed a successful business franchise. Being the beneficiary of a diversified business model focused on commercial banking, trade finance and retail, the Bank is well prepared to benefit from ongoing strong economic growth in Qatar due to high hydrocarbon prices and strong non-hydrocarbon activity. Through working with its majority sovereign shareholder structure, ABQ has a comparative advantage in terms of relevant contacts which it can leverage to develop the business franchise further. The increases in shareholders' funds in 2011 and in October 2012 have significantly raised the capital adequacy ratio and provided a solid basis for ABQ to further grow the credit portfolio.

As a result of settlements and write-offs, the quality of the loan portfolio improved significantly in the first nine months of the current year as demonstrated by the decline in NPLs. Loan-loss reserves (LLRs) provided more than full cover for NPLs in the same period testifying to a prudent provisioning policy. Liquidity is comfortable and continues to be supported by customer deposit funding, which grew particularly strongly in the first nine months of 2013 thanks to low-cost deposits. ABQ's profitability at both the net and operating levels remains strong, supported by good income generation and effective cost control. An improved NIM (CI estimated), thanks to the growing share of low cost deposits, coupled with sustained loan expansion has contributed to very healthy net interest income growth in Q1-Q3 2013. Concurrently, fee and commission income has continued to expand briskly and this has lifted the Bank's gross income as well as bottom line profitability.

ABQ's business is segmented into retail banking, grouped together with private banking and wealth management; corporate banking; and treasury and investments. Currently, Qatar Foundation is the largest single shareholder with 29.41% of ABQ's shares and QIA (through its subsidiary Qatar Holding Company) has a 17.65% shareholding, bringing the total shareholding by state-owned entities to 47.06%; other smaller investors in aggregate own 52.94% of the Bank's equity. At end-September 2013, the Bank's total assets were QAR23 billion (USD6.3 billion) and total capital was QAR3.4 billion (USD942mn).

CONTACT

Primary Analyst
Morris Helal
Senior Credit Analyst
Tel: 357 2534 2300
E-mail: morris.helal@ciratings.com

Secondary Analyst
Chris Nicolaou
Senior Credit Analyst
E-mail: chris.nicolaou@ciratings.com

Rating Committee Chairman
Rory Keelan
Senior Credit Analyst


The information sources used to prepare the credit ratings are the rated entity and public information. Capital Intelligence had access to the accounts and other relevant internal documents for the purpose of the rating, and considers the quality of information available on the issuer to be satisfactory for the purposes of assigning and maintaining credit ratings. Capital Intelligence does not audit or independently verify information received during the rating process.

The rating has been disclosed to the rated entity and released with no amendment following that disclosure. Ratings on the issuer were first released in October 1994. The ratings were last updated in November 2012.

The principal methodology used in determining the ratings is Bank Rating Methodology. The methodology and the meaning of each rating category and definition of default, as well as information on the attributes and limitations of CI's ratings, can be found at www.ciratings.com.



About CAPITAL INTELLIGENCE
Capital Intelligence (CI) has been providing credit analysis and ratings since 1985, and now rates over 400 Banks, Corporates and Financial Instruments (Bonds & Sukuk) in 37 countries. A specialist in emerging markets, CI's geographical coverage includes the Middle East, the wider Mediterranean region, Central and Eastern Europe, South Asia, South-East Asia, the Far East, and North and South Africa.

 






  MENA News Headlines
Apr 24 2014Qatar- HH Sheikha Moza Meets Mayor of Kobe Visits RIKEN Research Institution ,Qatar News Agency
(MENAFN - Qatar News Agency) Kobe April 24 - Her Highness Sheikha Moza bint Nasser Chairperson of Qatar Foundation for Education Science and Community Development (QF) today held a meeting with the ...

Apr 24 2014Qatar- Sidra-BMC Event Boosts Biomedical Research Publishing ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - A symposium organised jointly by Sidra Medical Research Centre and BioMed Central (BMC) mulled trends in research and on open access publishing here ...

Apr 24 2014Qatar- Mannai Corp Q1 Net Profit up 73% to QR 150.1 Million ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - Qatar Exchange listed Mannai Corporation (QE: MCCS) net profit is up 73% to QR 150.1 Million for the first quarter of fiscal year 2014 ending March 31 ...

Apr 24 2014Bahraini firms forecasted to grow 10 pct ,MENAFN
(MENAFN) In a report based on a study of over 650 companies across GCC, Kuwait Financial Centre (Markaz) forecasts a growth of the Bahraini companies' earnings by 10 percent in 2014, Gulf Daily News ...

Apr 24 2014Israeli Army Storms Deir Samit Village West of Hebron ,Qatar News Agency
(MENAFN - Qatar News Agency) bron April 24 - Israeli army forces stormed at dawn Thursday Deir Samit village southwest of Hebron city in the West Bank. The Israeli forces conducted raid and search ...

Apr 24 2014Qatar Airways to add more seats on Doha-Vienna route ,MENAFN
(MENAFN) Qatar Airways plans to offer more 1.700 seats on its Doha-Vienna route beginning from September 2014, according to Gulf News. The company aims to expand the growing passenger demand from ...

Apr 24 2014Qatar- QFC Authority Five-a-Side Football Tournament Kicks Off ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - Qatar Financial Centre (QFC) Authority's first Five-a-side Football Tournament is displaying dribbling skills of executives from Doha's financial ...

Apr 24 2014Dubai SME ties up with Taylor Wessing to raise awareness on Intellectual Property and fund-raising among SME100 firms ,MENAFN Press
(MENAFN Press) Dubai SME, the agency of the Department for Economic Development in Dubai mandated to develop the SME sector, have signed a memorandum of understanding (MoU) with the international law ...

Apr 24 2014Mannai Corporation net profit soars 73 percent in Q1 ,MENAFN
(MENAFN) Qatar's Mannai Corporation said that its net profit in the first quarter of this year increased significantly, the Peninsula Qatar reported. The group said that net profit in the period ...

Apr 24 2014Redefining large AOC launches 28€³ MVA monitors ,MENAFN Press
(MENAFN Press) Display specialist AOC launches its first two 28" (71.1 cm) monitors. The m2870Vhe and m2870Vq feature extra-large 16:9 MVA panels with Full HD resolution, wide viewing angles and high ...

Apr 24 2014Finance House Q1 Net Soars 38% to AED 35.51 Million ,MENAFN Press
(MENAFN Press) Finance House PJSC (FH), has kicked-off 2014 on an upbeat note by registering a consolidated net profit of AED 35.51 million for the first quarter of 2014, which is nearly 38% higher ...

Apr 24 2014Mazola launches Sunflower Oil in new 1.8 litre label and packaging ,MENAFN Press
(MENAFN Press) Mazola, one of the leading names in the regional food industry, today announced the launch of its 1.8 litre Sunflower Oil in a brand new pack and label design. The new look perfectly ...

Apr 24 2014Estidama Villa Experience Centre Highlights Benefits of Resource-Efficient Living at Cityscape ,MENAFN Press
(MENAFN Press) The Abu Dhabi Urban Planning Council (UPC) today opened its Estidama villa experience to Cityscape visitors, giving them the chance to explore some of the innovative features designed ...

Apr 24 2014Qatar Stock Exchange Down 0.05% ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - The Qatar Exchange ended in the red area when trading closed Thursday at 12954.93 points (0.05%) down 6.63 points from the previous closing of 12961.56 ...

Apr 24 2014Afghan Guard Shoots Dead 3 Foreigners in Hospital ,Qatar News Agency
(MENAFN - Qatar News Agency) Kabul April 24 - Three foreigners including a doctor were shot dead and their colleague wounded when a guard of a private Cure Hospital opened fire on them in the ...

Apr 24 2014Georgian Justice Minister Leaves Doha ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - HE Minister of Justice of Georgia Tia Tsulukiana left Doha on Thursday morning wrapping up a two-day official visit to the country. An agreement on ...

Apr 24 2014Egyptian Premier Off to Chad ,Qatar News Agency
(MENAFN - Qatar News Agency) Cairo April 24 - Egyptian Prime Minister Ibrahim Mehlib left cairo on Thursday for Chad the first leg of a three-day two-state trip that will also take him to Tanzania ...

Apr 24 2014Dusit International reasserts its position as one of Asias leading hospitality groups ,MENAFN Press
(MENAFN Press) Dusit International will reassert its position as one of Asia's leading hospitality groups during the upcoming Arabian Travel Market (ATM), with the attendance of COO David Shackleton ...

Apr 24 2014Israeli Tanks Enter Gaza Border area ,Qatar News Agency
(MENAFN - Qatar News Agency) Gaza April 24 - Six Israeli military tanks on Thursday entered a border area in the southern Gaza Strip witnesses said. The tanks crossed into Gaza in an area called ...

Apr 24 2014Australian Federal Parliament Deputy Speaker Meets HE Qatari Ambassador ,Qatar News Agency
(MENAFN - Qatar News Agency) Canberra April 24 - Australian Federal Parliament Deputy Speaker Bruce Scott met here Thursday with HE Qatar's Ambassador to Australia Yousef bin Ali Al ...

more...


 
Click to Apply






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help