QIIB’s net profit grows by 5.1%; assets at QR50.6bn
24 Oct 2017 - 0:23
Maintaining its growth trajectory, the Qatar International Islamic Bank (QIIB) recorded a net profit of QR700m in third quarter of 2017 (Q3,17), up 5.1 percent compared to the same period in 2016. The bank’s total assets grew by 17.5 percent to QR50.6bn, year-on-year.
Announcing the financial results, Sheikh Dr Khalid bin Thani bin Abdullah Al Thani, Chairman and Managing Director of QIIB said the net profit growth shows that the bank was able to overcome the challenges and maintain the stable growth rate that distinguishes it for a long time now.
“We are proud to achieve this growth, which is primarily due to our engagement with the Qatari economy that provides rich and substantial opportunities and one that proves to be strong, dynamic and capable of overcoming challenges at all levels, and sustaining growth and prosperity for the various sectors,” Sheikh Dr Khalid said.
“Given the circumstances that have arisen, we consider these results as our contribution to the Qatari economy, which has proved its resilience and capabilities in the face of the blockade and attempts to dwarf its growth,” he added. The Chairman affirmed that Qatar International Islamic Bank is committed to implementing its strategy that focuses on the local market, financing various projects and coordinating with all sectors, so as to increase opportunities, facilitate works and help execute projects as scheduled.
“Opportunities available in the local market call for the bank’s active engagement with the local business sector in order to enhance returns to the bank’s shareholders and raise profitability based on internal controls and policies. We also need to put focus on making headway despite competition, even as we manage market risks wisely,” he added.
Dr Abdulbasit Ahmad Al Shaibei, QIIB Chief Executive Officer
Dr Abdulbasit Ahmad Al Shaibei, QIIB Chief Executive Officer commented: “QIIB’s total revenues for the third quarter reached 1,388 million riyals compared to 1,262 million riyals during the same period of 2016, which indicates a growth rate of 10 percent.” He pointed out that QIIB’s financing portfolio reached QR29.9bn at the end of the third quarter of this year compared to QR26.8bn during the same period of 2016, growing at a rate of 11.5 percent.
QIIB’s capital adequacy ratio based on the Basel III requirements reached 17.36 percent, which proves the strength of the bank’s financial position and the wise policies it pursues, especially the risk management.
The efficiency ratio (Cost to Income) is at 24.4 percent, which is one of the best indicators in the banking sector. Credit to deposits ratio stood at 84.2 percent reflecting the growth of customer deposits and increased liquidity in compliance with Qatar Central Bank regulations.
“The bank results confirm our success in implementing the plans and policies approved by the Board of Directors, in the budgetary items planned and growth despite the challenges and various market forces at work.” Commenting on the ongoing blockade against Qatar he said: “In some way, this blockade motivated us to work even harder, and made us more determined to rely on ourselves and achieve self-sufficiency. Post-blockade, we have seen more opportunities being created in the market”.
In order to diversify its sources of income and gain better liquidity and adapt to the market conditions, QIIB established a $2bn sukuk, which got the approvals of UK’s Financial Conduct Authority (FCA) and the London Stock Exchange. The sukuk programme had been assigned a provisional rating of ‘A2’ by Moody’s and an expected rating of ‘A’ by Fitch Ratings.
On QIIB’s operations abroad, Dr AlShaibei said, “The Umniah Bank in Morocco, which was soft launched recently, is expected to be formally opened in early November. Umniah Bank is licensed to provide Islamic banking services and products in the Kingdom of Morocco.”