QIB General Assembly Approved the Board proposal to distribute 40% cash dividends
25/02/2014, Doha, Qatar
The QIB Ordinary Annual General Assembly Meeting held its annual meeting on Monday February 24th at the Four Seasons hotel, which was presided by QIB Chairman H.E. Sheikh Jassim Bin Hamad Bin Jassim Bin Jaber Al – Thani. QIB Financial results, as well as a number of other agenda items were among the key topics discussed by the Assembly. During the meeting, the Assembly adopted the Board recommendation on the distribution of the 2013 profits to shareholders at 40% of the nominal share value (4 QAR per share).
Sheikh Jassim Bin Hamad Bin Jassim Bin Jaber Al Thani, QIB Chairman presented the board report:
It is my greatest honor to bid you all a warm welcome and express my gratitude for your presence here today. On behalf of the QIB Board of Directors, it is my pleasure to present to you this Annual Report on QIB’s results for fiscal year 2013. The year 2013 was a year of effective, positive achievements that allowed us to move away from the repercussions that weighed heavily upon business, be it in terms of regulations, policies, and criteria in effect, or the management and restructuring of certain foreign investments, where QIB took some positive steps towards rearranging said investments and using them to bolster our results, as opposed to them being a burden on our financial statements.
On the local level, we were successful in bringing stability to QIB’s administrative and executive structures, and filling all vacancies with competent, experienced, and immensely qualified individuals who have been charged with managing and streamlining operations within QIB in a manner that aligns with the criteria set by monitoring authorities. Furthermore, we broadened our scope of activity by adding new branches and types of activities, and establishing financing and investment activity administrations for SMEs and meeting clients’ needs in a prompt fashion. Additionally, QIB took positive steps to add a number of new high-profile clients to its current investment portfolio, namely clients who have not previously dealt with QIB or even any Islamic banks. QIB also provided direct financing and partook in major investments and financing ventures for a group of projects and companies such as Qatar Rail, and provided substantial financing for Kahramaa, Gulf Cement Company, Maran – Naqilat, and numerous other major corporations.
QIB also set in motion several bold initiatives aimed at reviewing and modernizing its policies and procedures to render them more in line with the requirements of governance and those of monitoring authorities; we also made a number of strategic decisions (which implementation is already on course) aimed at effecting radical upgrades in our computer system by transitioning to the latest banking systems in use and substituting the current system with the T24 Core Banking system by Temenos. A great deal of focus was also allocated to training, where over 140 training programs were carried out and helped provide over 2300 training openings for QIB employees.
In terms of foreign investments, QIB has taken immensely positive steps this year towards restructuring and organizing its foreign investment portfolio, particularly for investments made through sister companies and subsidiaries in the United Kingdom, Lebanon, and Malaysia, where QIB raised its total share in the aforementioned investments in a manner commensurate with the requirements of monitoring authorities and providing QIB with an opportunity to closely monitor its business and ensure more profitability for depositors and shareholders.
We are pursuing our future initiatives and plans aimed at making 2014 a quantum leap in terms of services, banking support, and reaching as many people as possible on all levels, as well as turning our foreign investments into effective tools with positive yields, particularly those made through sister companies and subsidiaries, all the while shedding ineffectual investments and focusing on operations falling directly within QIB’s field of specialization as an Islamic financial institution, and developing the operations and risk assessment sectors to develop their ability to compete and bolster their capabilities.
As stated earlier, the results of fiscal year 2013 are a clear indicator that we have managed to overcome the circumstances that negatively impacted our financial statements, which helped pave the way for stellar achievements that were manifested in our consolidated results. QIB’s total assets grew 5.7% to reach 77.4 billion Riyals by the end of 2013 compared to 73.2 billion Riyals in 2012. Customer deposits saw a steep rise of 16.7% to reach 50.4 billion Riyals by the end of fiscal year 2013 compared to 43.1 billion Riyals in 2012, thus enabling QIB to effectively support the constant growth of assets. Total revenue by December 31st 2013 amounted to 3.144 million Riyals, reflecting a 1.3% growth, compared to 3.105 million Riyals last year, where income from financing and investment activities grew by 5% (2.804 million Riyals) by the end of December 2013 compared to 2.666 million Riyals last year, reflecting increasing positive growth in QIB’s core operating activities. Moreover, QIB managed to raise the quality of its investment portfolio this year, where non-performing financing assets dropped to 0.9% with a provision coverage of 94% compared to 1.6% with a provision coverage of 63% in 2012.
Thanks to the overall positive trends in its main statements, QIB’s net profit for fiscal year 2013 totaled 1.335 million Riyals, reflecting a growth rate of 7.6% compared to year 2012 results. Based on those results, the Board recommends that your Honorable Assembly approves profit distribution to shareholders at 40% of the nominal share value, which is equal to (4 Riyals per share), drawn from the operating results without resorting to any reserves.
In conclusion, allow me to extend, on behalf of the Board of Directors, our most sincere gratitude and appreciation to His Highness the Emir, Sheikh Tamim Bin Hamad Bin Khalifa Al – Thani, and His Highness the Emir, Sheikh Hamad Bin Khalifa Al – Thani, for their continuous support and encouragement to our Nation’s banking sector.
I would also be remiss not to extend our thanks and appreciation to all those working for state authorities concerned with the banking sector for their invaluable guidance and constant support, and to all our clients, investors, and shareholders. Thank you all for your trust and loyalty towards QIB, and to the Shari’a Supervisory Board as well as QIB Management and employees for their efforts and dedication. Special thanks go out to Mr. Bassel Gamal, Group Chief Executive Officer, for his monumental efforts, experience, and competence, which he gave to help us put our internal affairs in order.
The strong operating performance has enabled the Bank to pursue a conservative impairment policy by allocating QAR 360 million towards improving the provision coverage on financial investments and financing activities compared to QAR 491 million in 2012. As a result the coverage ratio for non-performing financing assets reached 94% as at 31 December 2013 up from 62% as of 31 December 2012.
Total Shareholders’ Equity of the Bank increased by QAR 386 million to reach QAR 11,860 million, helping the Bank to improve its capital adequacy ratio to 16.5%.
Sheikh Jassim Bin Hamad Bin Jassim Bin Jaber Al Thani, QIB Chairman, commented earlier when QIB announce the 2013 results : “The Bank has increased business volumes across all market segments, which had positive impact on QIB’s end of year financial results, solidifying its position as a leading bank in Qatar. QIB has managed to implement successful risk management during 2013 strengthening all prudential ratios and building a strong foundation for future business expansion.”
He added, “QIB keeps on supporting the local economy, investing in local talent and continues to be a good corporate citizen by supporting government initiatives and donating to the ones in need.”
Sheikh Jassim concluded by expressing his deep gratitude to QIB’s shareholders and clients for their trust in the Bank, and his appreciation to the Board of Directors and employees for their contribution and continuous efforts towards achieving positive results.
During 2013 Fitch has affirmed the Bank’s long term Issuer Default Rating (IDR) of ‘A’ with a stable outlook. Similarly Standard & Poor’s Rating Services have also maintained QIB’s Counterparty Credit Rating at “A-“with a stable outlook which reflects the strong position in Qatar’s rapidly expanding Islamic banking market, favorable operating environment and strong capitalization.
QIB’s dominant role in Islamic Banking has been recognized through number of accolades that it has received as the Best Islamic Bank in Qatar from The Banker, Islamic Finance News (IFN), Euromoney, The Asset Magazine, World Finance and “Global Finance”.
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