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QIB Profit reached QR 1.334,5 billion in 2010

Board proposed to distribute 50% Cash Profit to Shareholders

QR 51.8 bn assets at growth rate of 32% & 49% increase of deposits
Doha, Qatar - January 19, 2010: Qatar Islamic Bank ( QIB ), the leader in Islamic banking solutions, has announced a recorded net profit of QR 1.334,5 billion for the year 2010. QIB Board of Directors proposed a 50 percent Cash Profit Distribution to shareholders, subject to the approval of Qatar Central Bank and to be discussed in the next meeting of QIB General Assembly.

The profit is mainly from operating revenues that reached 2.353 billion QR, while total assets were at 51.8 billion by end of 2010 compared to 39.3 billion in 2009, a growth rate of 32 %. In addition, ROAA was at 2.9%, to further consolidate the Bank's Financial Utilization Adequacy.

Total Equity reached QR 9.2 billion by end of 2010 - an increase of 1.7% compared to the same period in 2009, whereas ROAE was at 17.9% and the earning per share was at (EPS: QR 6.20 share).

His Excellency QIB 's Chairman, Sheikh Jassim bin Hamad - bin Jabr al Thani commented on the 2010 results, "During 2010, QIB was able to cope very efficiently with all financial and economic challenges. Its five-year strategy (2008-2012) aims at enhancing QIB positioning on both local and global scale while maintaining a sound and balanced financial standing and effective banking risk management."

" QIB adopted well-balanced strategies to secure adequate provisions that meet Basel 2 standards thus safeguarding our financing and investment portfolios. This policy also included complying with leading industry ratios and reducing non-performing loan ratio at 0.96%," added His Excellency.

" QIB is looking at a new era of growth and development. Currently, QIB Board of Directors is working on an advanced strategic plan to expand our international banking and investment activities in line with the bank's five-year strategy and fulfill the aspirations of our shareholders, customers and investors.

QIB seeks to play a greater role in Qatar's economy, which is growing at such an amazing rate. This can only be achieved through serious and well-planned efforts to increase QIB share in the Qatari financial market, whose services and investments are expected to develop at an even higher rate in view of the World Cup 2022," said His Excellency.

His Excellency Sheikh Jassim concluded, "We, at QIB , value the enormous support that the banking sector is receiving from our wise government under the leadership of His Highness the Emir, Sheikh Hamad bin Khalifa al Thani and His Highness the Heir Apparent. We appreciate the wise policies of Qatar Central Bank , which encourage the development and stability of banks in the country. We are also grateful to our shareholders and customers for their trust and confidence - they are the centre of attention of QIB 's Board of Directors and the Executive Management".

Some of the QIB financial highlights for 2010 follow below.
Net Financing Income at QR 1.863 billion compared to 1.816 for the same period in 2009 (growth 3%). Net fee income is QR 289 million, a growth rate of 12%, compared to QR 259 million in 2009. This reflects the ability of QIB to attract new customers due to its well-developed banking services and innovative solutions meeting customers' requirements.

Account holders' share of profit was QR 447 million in 2010 compared to QR 510 million in 2009, which is a decrease of 12% reflecting QIB balanced policy in the banking sector in Qatar.

Financing portfolio recorded QR 29.3 billion compared to 22.7 billion at the end of 2009 (growth of 29%) with domestic financing representing 97% of the Portfolio. This reflects the decrease of operation risks that QIB faced during the global economic challenges and the financing products provided to its customers. The investment portfolio reached QR 6.1 billion in 2010 compared to QR 4.6 billion in the same period last year at a growth rate of 32%.

Unrestricted investment account holders have achieved an increase of 49% reaching QR 30.3 billion by end of 2010 compared to 20.4 billion in 2009 reflecting the customers' confidence in QIB .

Among QIB achievements in 2010
- QIB successfully placed US$ 750 million in its debut International Sukuk. The total demand reached US$ 6 billion, about 8 times of the offered amount. This highly successful result further confirms the credibility of QIB and investors' confidence in itsprogress and development.
- QIB contributed by QR 1.25 billion in Islamic Sukuk issued by Qatar Central Bank on behalf of Qatar government.
- QIB signed a QR 2 billion Murabaha financing deal with Barwa Real Estate.
- QIB has been recognized as the Bank of the Year 2010 by the Arabian Business Awards
- QIB received an ISO 27001 for Banking Information Security from the International Organization for Standardization (ISO). This certification was awarded to QIB because of the bank's possession and submission of several high-tech standards in data security
- QIB has earned the Qatarisation Award from GCC Ministers of Labor
- QIB , Al-Futtaim, and Aqar Real Estate Investment signed a QAR 6 billion (AED 6 billion) joint venture agreement to construct a state-of-the-art entertainment and retail complex in Doha "Bawabat Al Shamal Project", slated to become a driving force behind Qatar's diverse economic development.
- QIB has achieved a great success in distributing Hemaya product ( QIB -UK) - a Sharia'-compliant investment product that guarantees excellent investment opportunities with an expected return exceeding 10% p.a.
- QIB signed a Memorandum of Understanding (MoU) with Woori Investment & Securities Inc (Woori) with the aim of facilitating mutual cooperation between the two parties in the search for suitable financial and investment opportunities in the Korean, Asian and Qatari markets.
- QIB has signed a further MoU with the leading French banking group Banque Populaire Des Caisses d'Epargne (BPCE) to promote cooperation between the two banks for launching Sharia'-compliant products such as Sukuk to the French SME and retail banking sectors.

- Ends -

© Press Release 2011

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