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QIB completed the sale of its AFB Share to MBSB

08/02/2018, Doha,Qatar

QIB completed the sale of its AFB Share to MBSB

Qatar Islamic Bank (QIB) has executed the sale agreement with Malaysia Building Society Bhd (MBSB) to sell its full stake of 60% in the Asian Finance Bank (AFB), an affiliate in Malaysia.

The sale agreement was signed on 04/11/2017 and executed today 07/02/2018 with QIB receiving cash proceeds of MYR 357.2 million from the sale of its stake. The sale shall have no material impact on bank’s financial performance at the time of exit or in future. It is worth mentioning that QIB’s decision to exit was formulated more than 2 years ago until an acceptable offer to QIB’s Board was submitted. QIB decision to exit from investment in this affiliate was driven by being no longer in line with QIB’s business strategy together with low returns on Investment. 

QIB supplementary disclosure relating to the execution of AFB

QIB has issued a supplementary disclosure relating to the execution of the sale of the Bank's share in Asian Finance Bank (AFB) as follows:

  • Malaysia Building Society Berhad (MBSB), a Malaysian financial institution headquartered in Kuala Lumpur, Malaysia with a capital of RYM 5.9 billion on 30 September 2017 has offered to acquire the entire shares of Asian Finance Bank (AFB), a Malaysian financial institution headquartered in Kuala Lumpur, Malaysia and Its main activity is to provide financial services to individuals and companies with an estimated capital of RYM 532.5 million.
  • MBSB’ shareholders include the following major investor, The Employee Provident Fund Board (65.3%) and the balance is owned by individual or institutional shareholders not exceeding the 5% cap.
  • The shareholders of Asian Finance Bank have agreed to sell their shares to Malaysia Building Society Berhad and table below provide AFB ownership structure.

Investor

Number of share

Ownership (%)

Qatar Islamic Bank

319,518,012

60 %

Rusd Investment Bank

88,755,004

16.67 %

Tadhamon International Islamic Bank

53,253,002

10 %

FAB

35,502,001

6.67 %

Al Haeil Group

35,502,001

6.67%

  • Qatar Islamic Bank Board of Directors has decided to exit from Asian Finance Bank due to low return on the investment and incompatibility with the existing strategy of the bank.
  • The table below shows the financial results of the Asian Finance Bank and Malaysia Building Society Berhad.

(amount in MYR Million)

Asian Finance Bank (AFB)

Malaysia Building Society Berhad (MBSB)

Year

2014

2015

2016

2014

2015

2016

Total Revenues

129

138

121

2,613

3,050

3,275

Net Profit

15

0.5

3.6

1,015

257

338

Total SE

493

492

497

4,682

4,862

6,724

QIB part of AFB profit (%)

9

0.3

2.16

n.a

n.a

n.a

  • Qatar Islamic Bank Board of Directors has approved to sale its participation at an exit value of MYR 357.2 million to be received in cash, noting that the exit from Asian Finance Bank has limited impact on Qatar Islamic Bank's Financial due to the fact that AFB is considered as affiliate and it is not consolidated in QIB consolidate balance sheet and income statement.
  • The sale agreement was signed on 04/11/2017 and was executed on 07/02/2018 at a loss of QR 1 million due to exchange rate of Malaysian Ringgit against the Qatari riyal.

Note:According to our knowledge and until the date of this disclosure, the information whether financial or non-financial are public and quoted directly from disclosures provided by companies to the public and the Malaysian Stock Exchange

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