QIB net profit surges 10.9% to QR3.05bn

Qatar Islamic Bank (QIB), the country’s leading shariah-compliant banking services provider, achieved a net profit of QR3.05bn for the year 2019, up 10.9 percent compared to QR2.75bn reported in the previous year (2018).

The basic earnings per share (EPS) of QIB stood at QR1.21 compared to QR1.08 in December 2018, QIB’s Chairman Sheikh Jassim bin Hamad bin Jassim bin Jaber Al Thani, announced yesterday.

The Board of Directors of QIB has proposed a dividend distribution to shareholders of QR0.525 per share, or 52.5 percent of the nominal share value, subject to approval of Qatar Central Bank and QIB’s General Assembly.

Total asset of the Bank has increased by 6.7 percent compared to 2018 and now stands at QR163.5bn driven by a growth in the core banking activities. Financing activities registered a robust growth by 11.3 percent over 2018 to reach QR113.8bn. Investment securities have reached QR33.3bn registering a 5.7 percent growth over 2018. Customer deposits of the Bank now stand at QR111.6bn registering a strong growth by 11 percent compared to December 2018.

Total Income for the year ended December 31, 2019 amounted to QR7.74bn registering 12.4 percent growth compared to QR6.88bn for 2018. Income from financing and investing activities has grown by 15.5 percent to reach QR6.93bn at the end of 2019 compared to QR6bn for 2018, reflecting a healthy growth in QIB’s core operating activities.

Total general and administrative expenses of QR1.10bn for the year ended December 31, 2019 is 3.8 percent below QR1.14bn for the year ended December 31, 2018. Strict cost controls supporting higher operating revenues enabled further enhancement of efficiency, bringing down the cost to income ratio to 22.8 percent 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 percent, 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 percent coverage ratio for non-performing financing assets as of December 2019.

Total Shareholders’ Equity of the bank reached QR17.1bn, an increase of 11.1 percent as compared to December 2018. As of December 2019 the Total Capital adequacy of the Bank under Basel III guidelines is 19.5 percent, higher than the regulatory minimum requirements prescribed by QCB 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 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”.

Source from: The Peninsula