Doha, Qatar - 19 October, 2011: Qatar Islamic Bank (QIB), the largest Islamic bank in Qatar and one of the leading Islamic banks in the world has announced a net profit of QR 1.11 billion in nine months up to September   2011, an increase of 22.5% compared to the same period in 2010.

The core business of the bank has grown strongly, leading to a 18% increase in operating income which reached QR2.04 billion in the third quarter of 2011 compared to QR1.73 billion in the corresponding period of last year.

The bank's total equity reached QR10.9 billion by end of the third quarter of 2011, an increase of 25% against same period of 2010. 

Quarter on Quarter (QOQ) net profit was QR407.2 million, up by 33.6% compared to QR304.9 million in the equivalent period last year. The jump in net profit was the result of the growth in investment income which amounted to QR500 million in the third quarter compared to QR57million for the corresponding period.  

Return on Average Equity (ROAE) stood at 17.2%, and the third quarter earnings per share (EPS) - basic and diluted - at QR4.81 was 14% higher than EPS of QR4.22 in the same period of the previous year.

In the third quarter of 2011, net financing income was QR1.360 billion and fee income QR200 million compared to QR1.442 billion and QR215 million in the same period of 2010 respectively. 

Unrestricted Investment Account (URIA) holders' share of profit was QR285 million compared to QR376 million in 2010. QIB showed slight growth in URIA rising to QR20.35 billion in the third quarter of 2011 from QR20.17 billion in same period of the preceding year.  This is a testament to QIB's balanced funding strategy and the continued support and confidence of the bank's customers.

Total Assets of the bank stood at QR52.76 billion, a strong growth of 17.7% compared with QR44.84 billion for the same period in 2010.  The group Return on Average Assets (ROAA) stood at 3%, reflecting an efficient asset management strategy.

The value of the Financing Portfolio was QR26.86 billion in third quarter of 2011 compared to QR26.92 billion for the corresponding period of 2010. Domestic Financing represents a total of 98% of the overall portfolio, which indicates a high level of immunity from adverse global economic changes, as well as the range and diversity of the financing products offered to our customers. The Investment Portfolio witnessed very buoyant growth of 174%, increasing from QR6 billion last year to QR16.6 billion this year, resulting from the risk-free investment in government sukuk.

Customers Current and Investment Accounts have reached QR26.4 billion in third quarter of 2011 compared to reach QR27.2 billion in the same period of this year.

Commenting on the results, H.E Sheikh Jassim bin Hamad bin Jassim bin Jabr al Thani, QIB Chairman said, "The strong results recorded for the first half of 2011 reflect the fundamental strength and sound financial management which has been, and remains, a hallmark of QIB. The results are the product of a successful work plan that is in line with QIB's ongoing five-year strategy which aims to enhance growth locally and internationally, establish a strong and balanced financial position, maintain an efficient banking risk management and expand the local network even further,'

"The announcement of the results comes on the back of a strategic transformation programme that the bank is implementing with a view to restructuring both its local groups and its affiliates abroad in order to build a strong banking group with regional and international presence that meets the expectations of its shareholders, customers and strategic partners '', added QIB Chairman.

He concluded, "QIB will be launching further banking initiatives in the remainder of the year to serve new customer segments and provide top products and banking solutions for personal and corporate customers. QIB is also planning to expand its alternative channels by leveraging the latest banking technologies."

-Ends-

© Press Release 2011