EM CEEMEA CREDIT: Qatar Islamic Bank: Q2 earnings, neutral read

(QIBKQD; A1/NR/A)

• Qatar’s islamic bank QIB posted today 2Q25 interim results confirming sound capital adequacy, resilient profitability and best In class asset quality.
• We note how Net Financing and Investing Income was flat YoY at QAR2.57bn, with a +8.5% YoY marginal contribution from Net F&C, leaving total  op Income +1% YoY at QAR2.84bn. We end up with net PBT +8.7% YoY at QAR1.2bn.
• Sequentially, asset growth shows marginal increment contributing to total assets reaching QAR212bn. Asset quality boasts a low NPL ratio at 1.75% (vs 1.86% at YE24), with coverage at 95.1%.
• The capital position remains adequate with a conservative CET1 ratio at 18.2%, sequentially higher (17.60% as of end Q1), which remains a distinguishing factor supporting the Co.’s Sukuk funding strategy.