QIB profit grows by 14.5% in 2018

Board proposed to distribute 50% cash dividends to shareholders

  
His Excellency, Sheikh Jassim Bin Hamad Bin Jassim Bin Jaber Al Thani, Chairman of Qatar Islamic Bank

His Excellency, Sheikh Jassim Bin Hamad Bin Jassim Bin Jaber Al Thani, Chairman of Qatar Islamic Bank

Total Assets grow by 2% to reach QAR 153.2 Billion

Doha, Qatar: His Excellency, Sheikh Jassim Bin Hamad Bin Jassim Bin Jaber Al Thani, Chairman of Qatar Islamic Bank (QIB) has announced that QIB has achieved net profit attributable to shareholders of QAR 2,755.3 Million for the fiscal year 2018 compared to QAR 2,405.4 Million for the year 2017, thus marking an increase by 14.5% over last year with basic earnings per share of QAR 10.79 compared to QAR 9.31 in December 2017.

QIB Board of Directors proposed a dividend distribution to shareholders of QAR 5 per share i.e. 50% of the nominal share value, subject to approval of Qatar Central Bank and QIB’s General Assembly.

Total Assets of the Bank has increased by 2% compared to 2017 and now stands at QAR 153.2 Billion driven by a growth in the core banking activities. Financing activities now stand at QAR 102.2 Billion. Investment securities have now reached QAR 31.1 Billion having added QAR 743 Million, representing a 2.4% growth over 2017. Customer Deposits of the Bank now stand at QAR 100.6 Billion.

Total Income for the year ended 31 December 2018 was QAR 6,899.7 Million registering 11.3% growth compared to QAR 6,199.3 Million for 2017. Income from financing and investing activities has grown by 10.2% to reach QAR 6,018 Million at the end of 2018 compared to QAR 5,462.5 Million for 2017, reflecting a healthy growth in the Bank’s core operating activities.

Total expenses of QAR 1,161.2 Million for the year ended 31 December 2018 are 5% above QAR 1,105.7 Million for the year ended 31 December 2017. Strict cost controls supporting higher operating revenues enabled further enhancement of efficiency, bringing down the cost to income ratio to 25.7% for 2018 as compared to 26.6% for the year 2017.

QIB was able to manage the ratio of non-performing financing assets to total financing assets at 1.2%, 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% coverage ratio for non-performing financing assets as of December 2018.

Total Shareholders’ Equity of the bank reached QAR 15.4 Billion, an increase of 1% as compared to December 2017. As of December 2018 the Total Capital adequacy of the Bank under Basel III guidelines is 18.8%, higher than the regulatory minimum requirements prescribed by Qatar Central Bank and Basel Committee.   

“I am pleased to announce that QIB has marked yet another remarkable year. In 2018 QIB witnessed several milestones in terms of introduction of new innovative products and services and achieved growth in its banking activities. This success is the result of the successful implementation of our business strategy”, said His Excellency 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 national economy. We are dedicated in delivering value to all our stakeholders and offering our customers modern, convenient and timely banking solutions in full compliance with Shari’a principles” 

“As we enter into the new fiscal year, we have affirmed our position as the leading Islamic Bank locally while maintaining the position as the second largest Bank in the country. QIB today has the means, resources and qualification to continue delivering premium banking services to all QIB customers.”, 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 2019, we remain dedicated to continuously improving our products, digital platforms and services 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.

In January 2019 Moody's Investors Service, ("Moody's") affirmed long-term deposit ratings to QIB at “A1” with a Stable outlook. In December 2018, Standard & Poor’s (S&P) affirmed the Bank’s credit rating at ‘A-’ with a Stable outlook. In July 2018, Fitch Ratings affirmed QIB at 'A' with a Stable outlook and Capital Intelligence Ratings (CI) has affirmed the Bank’s Financial Strength Rating (FSR) of ‘A’.

During 2018, QIB has been recognized by many well-reputed international financial publications. Nine awards received from Global Finance include the “Best Financial Institution in the Middle East and Qatar,” “Best Consumer Digital Bank in Qatar” and “Safest Islamic Bank in Qatar”. QIB has also received the “Best Islamic Bank in Qatar” Award from The Banker, part of the Financial Times Group. Furthermore, QIB received the “Excellence in Mobile Banking” from the New Age Banking & Finance Awards, as well as three awards from the Assets magazine and three more from the Islamic Finance News (IFN). These awards recognize the significant progress QIB has made in establishing itself as a leading banking institution in the Middle East while strengthening its leadership position in Qatar.

-Ends-

© Press Release 2019

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