Qatar First Bank (QFB) has reported a profit of QR12.3m for the first quarter of this year (Q1, 2020) attributable to equity holders of the bank compared with a net profit of QR3.2m during the same period in 2019. However, in line with the accounting standards and best practices in place by regional and international banks, and in view of the global macroeconomic conditions, one-time reserve provisions have been made in order to confront the risks of the COVID-19 crisis.
This resulted in a recorded net loss of QR191.6m from making COVID-19 conservative provisions, which amounted to QR203.9m. The bank’s total expenses decreased by 15 percent to QR22.9m compared to same period of 2019. Total income also increased by 7 percent to QR34.2m compared to the same period last year. Income from structured products also increased by 27 percent compared to the first quarter of last year.
QFB Chairman Sheikh Faisal bin Thani Al Thani, said: “Despite the bank’s good operational performance over the first quarter where the overall adopted strategy objectives were realised, the unexpected crisis of the COVID-19 had a significant negative impact on the announced results.
It entailed one-off provisions in line with the best practices in place by regional and international banks. However, the good news is the good operational results is a clear indication of the success of the new strategy and its profitability even in light of these unfavourable and unprecedented macroeconomic conditions. The success of the strategy invites us to adopt an optimistic outlook for the bank and its business model.”
QFB’s fee income from structured products increased by 27 percent compared to the same period in 2019. The bank shall continue to harness the opportunities created through its revised strategy where key priority is sustainable organic growth of the bank’s customer base of high net worth individuals, institutional investors and government related entities.
The bank is currently working on developing new products and exploring good investment opportunities, as it aims to enhance product portfolio and diversify investment options it offers to customers. In line with the new strategy, the bank announced earlier that it has successfully completed the $117m off-market acquisition of 90 North office campus located in Bellevue, Washington.
This acquisition was QFB’s sixth product offerings and fourth in the US real estate market offering investors access to international investment opportunities through Investment Management Platform.
This investment provided clients with ten years of strong, credit-backed contractual cash flows with minimal capital obligations and a best-in-class asset in a market characterised by large, market-leading companies such as Microsoft, T-Mobile, Nintendo, REI, Amazon, Google, Facebook, Oculus, Costco, AT&T, and Boeing.
QFB also made earlier a successful exit along with its investors through the sale of two Boeing 737-900ER aircrafts, which is its second sharia-compliant aviation deal. The two aircrafts were on a 7-year longterm sharia-compliant lease contract to Indonesia’s Lion Air.
