QIB Profit grows by 7.5% to reach QAR 4,305 Million in 2023
16/01/2024, Doha,Qatar
Qatar Islamic Bank (QIB) has announced the financial results of the fiscal year ended 31 December 2023. Net profit attributable to shareholders amounted to QAR 4,305 Million for the fiscal year 2023 compared to QAR 4,005 Million for the year 2022 marking an increase of 7.5% over last year.
Basic earnings per share for the year 2023 is QAR 1.73 compared to QAR 1.62 for the year ended 31 December 2022. QIB Board of Directors proposed a dividend distribution to shareholders of QAR 0.725 per share i.e. 72.5% of the nominal share value, subject to approval of Qatar Central Bank and QIB’s General Assembly.
Total Assets of the Bank now stands at QAR 189.2 Billion representing a growth of 2.8% compared to QAR 184 Billion for the year ended 31 December 2022. Financing and investing activities were the primary drivers for the asset growth. Financing activities have now reached QAR 122.4 Billion having grown by 2.6% compared to December 2022 and Investment Securities reached QAR 48 Billion as at 31 December 2023 are up by 4.9% against December 2022. Customer Deposits stand at QAR 120.8 Billion as at 31 December 2023 with Financing to Deposit ratio of 96.5% as at 31 December 2023 compared to QCB maximum requirement of 100%, reflecting the Bank’s strong liquidity position.
Total Income for the year ended 31 December 2023 registered a strong growth of 24% to reach QAR 11.1 Billion compared to QAR 8.9 Billion for the year ended 31 December 2022. Income from financing and investing activities registered a robust growth of 27.2% to reach QAR 10.1 Billion compared to QAR 7.9 Billion for the year ended 31 December 2022. Income from financing activities has grown by 32% to reach QAR 8.6 Billion compared to QAR 6.5 Billion for the year ended 31 December 2022. Net Income from investing activities grew by 5.8% to reach QAR 1.5 Billion compared to QAR 1.4 Billion for the year ended 31 December 2022. Net fee and commission income has registered a healthy growth of 9.7% to reach QAR 889.2 Million compared to 810.4 Million for the year ended 31 December 2022, reflecting positively on the Bank’s core operating and banking services activities.
Total general and administrative expenses of the Bank were QAR 1.1 Billion for the year ended 31 December 2023 and were maintained almost at the same levels of last year. Bank’s drive to improve the efficiency supported by strict cost management measures helped in bringing down the cost-to-income ratio from 17.4% in 2022 to 17.1% for 2023, 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 around 1.7%, as at 31 December 2023 one of the lowest in the industry, reflecting the quality of the Bank’s financing assets portfolio and its effective risk management framework. QIB continued to create precautionary impairment charge on financing assets for QAR 1.1 Billion in the year ended 31 December 2023 and maintaining a healthy coverage ratio for non-performing financing assets at 87.5% as of 31 December 2023.
Total Shareholders’ Equity of the Bank reached QAR 25.4 Billion, an increase of 9.2% compared to QAR 23.3 Billion as at 31 December 2022. As of December 2023 the Total Capital adequacy of the Bank under Basel III guidelines is 20.4%, well above the regulatory minimum requirements prescribed by Qatar Central Bank and Basel Committee.
Commenting on 2023 end of year financial results, His Excellency Sheikh Jassim Bin Hamad Bin Jassim bin Jaber Al Thani, QIB Chairman said, “2023 was defined by our unwavering commitment to our customers, placing their needs at the forefront of our operations. Looking back at the 2023 fiscal year, despite the challenges posed by the operating and macroeconomic environment, QIB has delivered remarkable results. It is a testament to our financial strength and dedication to sustainable growth. This achievement was realized while we continued to invest in strengthening our core businesses and expanding our revenue streams with innovative products and services.”
“Our relentless focus on technology adoption, cost optimization, and customer-centricity has propelled us to emerge as the world’s most efficient bank. Furthermore, we achieved strong ROA and ROE ratios delivering high returns to our shareholders. These metrics reflect our commitment to delivering exceptional financial results and underscore our confidence in achieving future business objectives.”
He added: “Our balanced and diversified balance sheet remains a cornerstone of our success. We cater to all segments of the Qatari economy while upholding stringent risk management practices, including the integration of ESG principles in our credit policies. This has allowed us to maintain the lowest non-performing financing assets ratio in the Qatari banking sector. Our strategic investments in technology have borne fruit, with an ongoing increase in digital adoption. Notably, 99% of all transactions are now self-serve. Digital sales have contributed significantly to our total sales volume in 2023. This achievement reflects our commitment to delivering exceptional customer experiences through end-to-end digital solutions, powered by modern technologies such as Artificial Intelligence and data science.”
Sheikh Jassim highlighted the introduction of more than 50 new digital features across all QIB channels, many of which are pioneering innovations in Qatar. He continued: “QIB’s focus on sustainability is evident in the introduction of numerous sustainability-linked products and services. We firmly believe in our role in creating a more inclusive and sustainable future, exemplified by our extensive sustainability training for all employees and board members. QIB’s sustainable and stable business model has been recognized through the credit ratings from the key international rating agencies and translated into numerous recognitions and awards by the most credible international financial publications.”
Sheikh Jassim continued: “Our commitment to strong corporate governance remains unwavering. We welcomed four new members to our Board, including two independent members, and increased oversight and guidance to navigate challenging market conditions. Furthermore, our investment in our people, with over 51,000 hours of training and comprehensive programs in risk and compliance last year, demonstrates our commitment to fostering a skilled and responsible workforce.”
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 dedication and continuous efforts towards achieving positive results and continuous improvements during this difficult period.
In June 2023 Moody’s Investors Service, (“Moody’s”) affirmed the Long-term deposit ratings at ‘A1’ with a stable outlook. In July 2023, Fitch Ratings affirmed the Bank’s credit rating at ‘A-’ with a positive outlook. In May 2023, Capital Intelligence Ratings (CI) affirmed the Bank’s Long-term rating to ‘AA-’ with a stable outlook.
Throughout 2023, QIB earned a multitude of prestigious awards, receiving acclaim from international publications for its distinctive strategy aimed at enhancing profitability, creating value for shareholders, and demonstrating a noteworthy commitment to success. This success is attributed to a strategic blend of innovation and focused execution, supported by the visionary leadership of the board of directors and the commitment to digital innovation and sustainability.
The Banker named QIB as the Bank of the Year in Qatar and for the second consecutive year, Best Islamic Bank in the Middle East.
Euromoney bestowed prestigious accolades upon QIB, including the Best Islamic Bank in Qatar and a Market Leader in Islamic Finance and Digital Solutions, in addition to the Highly Regarded status in Corporate Banking and CSR. In recognition of its commitment to sustainability, QIB earned the coveted title of Best Bank for Sustainability (ESG) from Euromoney and secured the Euromoney Market Leader ranking in ESG. Additionally, QIB made it to Forbes Middle East’s inaugural Sustainability List.
QIB has emerged as the world’s most efficient bank as reported by the Asian Banker. Global Finance Magazine bestowed eight awards upon QIB for its digital banking excellence, including distinctions such as Best Consumer Digital Bank in Qatar and Best User Experience in the Middle East, while also acknowledging it as the Best Bank in Qatar and Best Islamic Financial Institution in Qatar.
Furthermore, QIB was recognized by The Asset Triple, The Asian Banker, IFN, EMEA Finance, MEED, and the World Union of Arab Banks (WUAB) for its excellence in digital, retail and corporate banking.
Beyond these accolades, QIB maintained its 2nd position in The Banker Top 1,000 Banks for Tier One Capital and Total Assets in Qatar. The Banker also highlighted QIB’s Top 5 position in Return on Assets in the Middle East. Forbes Middle East acknowledged QIB as the 2nd most valuable bank in Qatar, the 3rd top-listed company, and the 4th most valuable Islamic bank in the Middle East.
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