QIIB net profit reaches $320mln with growth rate of 8.3% in 2023

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Doha, Qatar: Chairman of QIIB Board of Directors, Sheikh Abdullah bin Thani bin Abdullah Al Thani, announced the bank’s 2023 year-end financial results here yesterday.

These results indicate continued achievement of the Bank’s outstanding growth across various financial performance indicators.

The announcement of the results came after a meeting of the Board of Directors chaired by Sheikh Abdullah bin Thani bin Abdullah Al Thani that discussed the year-end financial statements for the fiscal year, which ended on December 31, 2023.

QIIB achieved a net profit of QR1.16bn, marking a 8.3% growth compared to 2022, with earnings per share reaching QR0.7.

QIIB’s Board of Directors has recommended to the General Assembly of Shareholders the distribution of a cash dividend of QR0.45 per share (equivalent to 45% of the share’s par value).

This recommendation follows the consent of Qatar Central Bank (QCB) approval of the bank’s 2023 financial statements.

Commenting on these results, Sheikh Abdullah bin Thani affirmed, “QIIB has achieved outstanding results during the past year, further strengthening its financial indicators. The bank’s strategy succeeded in maintaining a focus on the Qatari market, while leveraging the abundant opportunities offered by the Qatari economy, which continues to demonstrate superior performance, thanks to the support and guidance of H H Sheikh Tamim bin Hamad Al Thani, the Amir of the State of Qatar.”

“The bank has been able to address various challenges and respond to market developments, continuing the implementation of its strategic plans. This has notably reflected on its performance, strengthening its position and achieving good growth rates”, he said.

He pointed out, “The bank has made significant strides in its operational performance. This improvement is attributed to various factors, mainly the remarkable success of the digital transformation plan.

“In 2023, QIIB accomplished a lot in this realm, forming partnerships with international companies to achieve more milestones in line with global developments and the significant technological advancements witnessed in the banking sector.”

Sheikh Abdullah bin Thani continued, “2023 witnessed many close collaborations with various local business entities. The bank continued to finance enterprises of various types, in line with our strategy focused on the local market.

“Special attention was given to the small and medium-sized enterprises (SMEs), recognising their role as a cornerstone in supporting and adding value to the broader segment of society. Emphasis on these enterprises also serves the goal of supporting entrepreneurs, who constitute a valuable asset in building the future.”

He highlighted, “The outstanding performance achieved by QIIB in 2023 has been reflected in the reports and ratings issued by international credit rating agencies, which have awarded QIIB superior ratings. Fitch rated the bank at A- with a positive outlook and Moody’s at A2 with a stable outlook, while Capital Intelligence assigned it an A+ rating with a stable outlook.

“These agencies unanimously agreed that QIIB is a leading bank with strong profitability, high asset quality, high liquidity, and a good level of capital adequacy and cost efficiency. This positive trend is expected to continue in the long term.”

On his part, Dr. Abdulbasit Ahmad Al Shaibei, QIIB’s Chief Executive Officer, detailed QIIB’s 2023 financial results.

He noted, “At year end, net operating income reached QR1.97bn, a growth rate of 10.1%, which confirms the effectiveness of management of the bank’s funding and investing activities, while total assets increased to QR61.6bn, with a growth rate of 9.3%. Net financing assets also grew by the end of the year to QR36.5bn, with a growth rate of 4.2%. Concurrently, customer deposits rose to QR38.9bn.

He stated: “Operational efficiency (cost-to-income ratio) continued to achieve exceptional levels throughout 2023, reaching 17.9%, which is among the lowest in both local and international banking sectors. This indicates excellent revenue and expense management, in conjunction with the increase in the banks’ key financial performance indicators.”

“At the end of 2023, total equity amounted to QR9.5bn, while Basel III capital adequacy stood at 17.0%. The bank also maintained the quality of its assets by maintaining the rate of non-performing financing to 2.9% and the coverage ratio to 87% indicating QIIB’s robust financial position and excellent management of various risks.”

Dr. Al Shaibei explained, “QIIB’s 2023 results demonstrated the bank’s ability to develop its tools, improve its indicators, and make progress in implementing the plans and strategies approved in response to various conditions and challenges faced by the bank throughout the past year, whether related to markets or other various factors.”

“QIIB worked diligently to enhance its operational efficiency, using various methods and means that have proven successful. Foremost among them is the bank’s substantial investment in modern technology and active engagement in the implementation of the digital transformation plans, where every opportunity in this realm has been capitalised upon to boost performance and provide customers with an exceptional banking experience that aligns with QIIB’s long-standing expertise”, he emphasised.