QIB Profit grows by 20% to reach QAR 1.6 billion in 2014
18/01/2015, Doha, Qatar
Qatar Islamic Bank (QIB), Qatar’s leading Islamic Bank, has announced a net profit (attributable to the shareholders of the Bank) of QAR 1.6 billion for the year 2014, which represents a strong 20% increase over 2013.
Earnings per Share reached QAR 6.78, compared to QAR 5.65 in December 2013. In line with the improved profitability, QIB Board of Directors proposed a profit distribution to shareholders of 42.5% of the nominal share value (QAR 4.25 per share) compared to 40% last year, subject to approval of Qatar Central Bank and QIB’s General Assembly.
Total Assets of the Bank has increased by 24% compared to 2013 and now stands at QAR 96 billion driven by a robust growth in the Financing activities that have now reached QAR 60 billion having added QAR 13 billion, representing a 27% growth over 2013.
Customer Deposits of the Bank have registered a strong growth of 32% compared to 2013 and now stand at QAR 67 billion, allowing the Bank to improve its financing to deposit ratio to 90%.
Total Income for the year ended 31 December 2014 was QAR 3,633 million registering 16% growth compared to QAR 3,144 million for 2013. Income from financing and investing activities has grown by 10% to reach QAR 3,093 million at the end of 2014 compared to QAR 2,804 million for 2013, reflecting a healthy growth in the Bank’s core operating activities.
QIB was able to maintain the ratio of non-performing financing assets to total financing assets at 1%, 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 with the coverage ratio for non-performing financing assets reaching 101% as of December 2014 up from 94% as of December 2013.
Total Shareholders’ Equity of the bank reached QAR 12.5 Billion, an increase of 5% as compared to December 2013. Total Capital adequacy of the Bank under Basel III guidelines is 14%, against the minimum limit of 12.5% prescribed by Qatar Central Bank. To further strengthen the Bank’s capital base and support the future business growth, Board of Directors have proposed to issue Basel III compliant Additional Tier 1 Sukuk up to a maximum amount of QAR 2 billion, subject to approval of Qatar Central Bank and General Assembly.
His Excellency, Sheikh Jassim Bin Hamad Bin Jassim Bin Jaber Al Thani, Chairman of Qatar Islamic Bank, commented “these positive financial results reflect successful implementation of the Bank’s strategy to grow its financing and investment activities during 2014. The Bank has also managed to strengthen the key performance and risk metrics through proactive financial and risk management.”
He added, “QIB remains committed to support the local economy through its innovative Shari’a compliant solutions offered to its large number of corporate customers who are handling major national projects across different sectors. The Bank continues to recruit and invest in local talent and fulfill its responsibility as a corporate citizen through its support to a number of social initiatives.”
Sheikh Jassim concluded the Board meeting 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.
International credit rating agency Standard & Poor’s has reaffirmed QIB’s Counterparty Credit Rating at “A-“with a stable outlook. Similarly, Capital Intelligence (CI) has reaffirmed QIB’s Financial Strength Rating (FSR) of ‘A’, with an upgraded ‘Stable’ Outlook in view of the significant improvement in financing asset quality and stabilized Return on Average Assets. Fitch has affirmed for the fourth year the Bank’s long term Issuer Default Rating (IDR) of ‘A’ with a stable outlook.
QIB has received a number of prestigious awards this year reflecting the results and achievements of the businesses, including the title of ‘Best Islamic Bank in Qatar’, which the Bank received from Euromoney, The Banker, World Finance, Qatari Enterprise Agility Awards and Islamic Finance News (IFN).
QIB has recently received ‘Best Treasury Products Management’ award Banker Middle East, ‘Best SME Islamic Finance Provider for the GCC & MENA’ from Global Banking & Finance Review, ‘Best Co-Branded Credit Card’ from Global Banking & Finance Review, ‘Best Financial Brand Qatar’ from Global Brands Magazine and ‘Best Call Centre customer experience of all banks in Qatar’ from Ethos Integrated Solutions.
World Finance also named QIB as ‘The Best SME Islamic Finance Provider’; while Global Finance voted QIB as the Safest Islamic Bank in Qatar, in addition QIB was recently named Contractor Financing Bank of the Year during the second Qatar Contractors Forum. Meanwhile, Islamic Finance News (IFN) named QIB as both the ‘Arranger of the Syndicated Deal of the Year’ for its Ijarah Facility; and ‘Arranger in the Tawarruq Deal of the Year’ for its Murabahah Facility.
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