ibq reports 11% growth in net profit for 2017

 06 Feb 2018 - 0:00

ibq reports 11% growth in net profit for 2017

The Peninsula

DOHA: International Bank of Qatar (ibq) yesterday announced its financials for 2017 and reported a net profit of QR555.1m, up 11 percent compared to the previous year (2016).  The bank’s total operating income has also increased by 13 percent against 2016.
This strong result was on the back of core underlying transactions emanating from the bank’s strong client franchise and is a testament to its Qatar-focused business strategy. All business segments generated a positive year-on-year total income performance which contributed to the overall net profit increase.
Expenses were tightly managed and in line with expectations with the cost income ratio improving by almost 3 percent to 34.4 percent. ibq continues to rationalise its cost structure as appropriate while keeping pace with technology, security and safeguarding client data and assets. The shape of the balance sheet was directionally sound as the asset quality remained strong and stable, with the non-performing loan ratio at 1.2 percent even though total assets decreased by 7.5 percent. Loans and advances improved by 3.4 percent year-on-year while deposits declined at a marginal 1.7 percent. However, deposits grew in the second half of 2017 by 10.2 percent. ibq consciously reduced its dependence on interbank funding from the market by 35.4 percent as additional liquidity was not required. Corporate governance remains pivotal as always. ibq’s financial stability and liquidity remains very healthy as reflected by all regulatory ratios being  within the requirements of the QCB including our credit ratio and liquidity ratio.
Total capital adequacy of the bank under Basel III guidelines is now 15.34 percent (2016: 14.25 percent) and is higher than the regulatory minimum requirements prescribed by the QCB and Basel Committee.
ibq’s net interest margin and return on average assets improved last year, and the Bank’s return on average equity now stands at a healthy 12.1 percent, compared to 11.4 percent last year.
Omar Bouhadiba, Managing Director of ibq, said: “This has been a year, in which we had to face unusual circumstances. We proactively managed the balance sheet by reducing the bank’s dependence on volatile interbank money market facilities. Our clients were very supportive, and liquidity remained adequate at all times. ibq business continued at a healthy pace.”
Sheikh Hamad bin Jassim bin Jabor Al Thani, Chairman of ibq, added that these results were a sound performance on previous year resulting in the bank generating a net profit at QR555.1m, which was an 11 percent increase. He added that the results confirm that ibq is in a strong financial position and he commended management and staff for their dedication throughout the year for producing such a result.