Doha Bank Outlook Upgraded to “Stable” & Rating Reaffirmed by Standard & Poor (S&P)
Standard & Poor (S&P) the International Credit Rating Agency has upgraded Doha Bank’s Outlook to Stable from Negative and also re-affirmed the ‘BBB+ / A2 issuer credit ratings of the Bank. The rating action reflect S&P views that Qatar has managed the negative impacts of the boycott in an effective manner, which has resulted in limited impact on the country’s economic performance.
S&P said, “Doha Bank ratings reflect its adequate foothold in the local economy, as the fifth-largest bank in the system with a strong focus on private-sector lending. The bank’s capitalization is seen as a positive factor, underpinned by their forecast that the RAC ratio before concentration adjustments will remain slightly above 10% over the next 12-24 months. Doha Bank’s liquidity is at par with peers’ and is a neutral factor for its ratings. Doha Bank has replaced the deposits of boycotting Arab countries with core deposits from the Qatari government and GREs, leading to a better-balanced funding profile more in line with those of peers.”
Dr. R. Seetharaman, Group CEO of Doha Bank, said that, given the changing business dynamics, Doha bank has optimally allocated the risk weighted capital to deliver higher returns. The Bank has become strong over the years with total capital adequacy ratio at 17.1% as of 30th Sept 2018, through the strategic utilization of the shareholder’s funds. The bank has been consistently managing its Net Interest Margin as the highest amongst its peers. He said, the bank has been selected in the FTSE4Good Emerging Index. The selection highlights Doha Bank’s continued leadership in environmental, social and governance (ESG) performance. He said that the bank is looking to tap the debt markets, but has not determined the amount. The recent ratings upgrade reflect the above inherent strength of the franchise. The S&P’s stable outlook reflects that the economic impact that country and bank witnessed on account of blockade is behind us.