QIB Profit grows by 11% to reach QAR 3,055 Million in 2019
15/01/2020, Doha,Qatar
His Excellency, Sheikh Jassim Bin Hamad Bin Jassim Bin Jaber Al Thani, Chairman of Qatar Islamic Bank (QIB) has announced that QIB has achieved net profit attributable to shareholders of QAR 3,055.4 Million for the fiscal year 2019 compared to QAR 2,755.3 Million for the year 2018, thus marking an increase by 10.9% over last year with basic earnings per share of QAR 1.21 compared to QAR 1.08 in December 2018.
QIB Board of Directors proposed a dividend distribution to shareholders of QAR 0.525 per share i.e. 52.5% of the nominal share value, subject to approval of Qatar Central Bank and QIB’s General Assembly.
Total Assets of the Bank has increased by 6.7% compared to 2018 and now stands at QAR 163.5 Billion driven by a growth in the core banking activities. Financing activities registered a robust growth by 11.3% over 2018 to reach QAR 113.8 Billion. Investment securities have reached QAR 33.3 Billion registering a 5.7% growth over 2018. Customer Deposits of the Bank now stand at QAR 111.6 Billion registering a strong growth by 11% compared to December 2018.
Total Income for the year ended 31 December 2019 amounted to QAR 7,738.2 Million registering 12.4% growth compared to QAR 6,882.9 Million for 2018. Income from financing and investing activities has grown by 15.5% to reach QAR 6,929.8 Million at the end of 2019 compared to QAR 6,001.2 Million for 2018, reflecting a healthy growth in the Bank’s core operating activities.
Total general and administrative expenses of QAR 1,101 Million for the year ended 31 December 2019 is 3.8% below QAR 1,144.4 Million for the year ended 31 December 2018. Strict cost controls supporting higher operating revenues enabled further enhancement of efficiency, bringing down the cost to income ratio to 22.8% for 2019, which is the lowest in the Qatari Banking sector.
QIB was able to manage the ratio of non-performing financing assets to total financing assets at 1.3 %, one of the lowest in the industry, reflecting the quality of the Bank’s financing assets portfolio and its effective risk management framework. QIB continues to pursue the conservative impairment policy maintaining 100% coverage ratio for non-performing financing assets as of December 2019.
Total Shareholders’ Equity of the bank reached QAR 17.1 Billion, an increase of 11.1% as compared to December 2018. As of December 2019 the Total Capital adequacy of the Bank under Basel III guidelines is 19.5%, higher than the regulatory minimum requirements prescribed by Qatar Central Bank and Basel Committee.
“I am pleased to announce that QIB has marked yet another remarkable year. In 2019, QIB witnessed several milestones in terms of introduction of new innovative products and services as part of the Bank’s digital transformation program and we achieved growth across all banking activities through the successful implementation of our business strategy”, said His Excellency Sheikh Jassim Bin Hamad Bin Jassim bin Jaber Al Thani, QIB Chairman. “This year’s financial results confirm the Bank’s strong position and reflect the firmness, resilience and stability of the Qatari banking sector and the national economy”.
“As we enter into the new fiscal year, we have affirmed our position as the leading Islamic Bank while maintaining the position as the second largest Bank in the country. QIB today has the means, resources and qualifications to continue delivering premium banking services to all QIB customers. We are dedicated to delivering value to all our stakeholders and offering our customers modern, convenient and timely banking solutions”, said Sheikh Jassim.
“The Bank’s future development plans are in line with Qatar National Vision 2030. QIB is committed to support the diversification of Qatar’s local economy and the development of its strong private sector”. He added “For 2020, we remain focused on continuously improving our products, digital platforms and level of service and helping our customers and partners succeed”.
Sheikh Jassim concluded the Board meeting by expressing his profound gratitude to QIB’s shareholders and customers for their trust in the Bank, and his appreciation to the Board of Directors and all Bank employees for their contribution and continuous efforts towards achieving positive results and continuous improvements”.
In November 2019, Fitch Ratings affirmed Qatar Islamic Bank at ‘A’ with a Stable outlook. Also in December 2019, Moody’s Investors Service, (“Moody’s”) has affirmed the Long-term deposit ratings of QIB at “A1” with a Stable outlook. In May 2019, Capital Intelligence Ratings (CI) has affirmed the bank’s Long-term Currency Rating (LTCR) of ‘A+’ with a Stable outlook. In March 2019, Standard & Poor’s (S&P) affirmed the bank’s credit rating at ‘A-’ with a Stable outlook.
QIB’s outstanding performance and its investments in innovation, technology and customer experience has led the Bank to be recognized as one of the leading banks in the region. In 2019, QIB has received more than 20 awards from reputable international institutions, including “Qatar’s Best Bank” from Euromoney, “Best Islamic Bank in the Middle East” by the Banker, Financial Times Group and “Best Islamic Financial Institution in Qatar” by Global Finance. In recognition of the bank’s digital transformation results, QIB was named “Best Digital Bank in Qatar” by the Asian Banker and “Qatar’s Most Innovative Digital Bank” and “Qatar’s Best Consumer Digital Bank” by Global Finance. Recognizing the bank’s long term and sustainable performance, The Asian Banker Magazine awarded Mr. Bassel Gamal, QIB’s Group CEO, with the Leadership Achievement Award and The Best Managed Bank in Qatar Award with both prestigious awards being granted only once every three years.
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