Qatar First Bank (QFB) recorded a net loss of QR265.6m resulting mainly from the downward revision of the valuations of some of the Bank’s investments across several markets.
Despite the write-down of the investment book, the bank’s total assets did not decline and closed at almost QR6bn, mainly driven by the increase from financing assets. The bank announced the launch of the second phase of its cost rationalisation plan.
The investment portfolio continued to generate healthy dividends (QR13m). Financing assets increased by 33 percent, and will generate recurring income during the coming years.
QFB’s Sukuk book continued to generate positive returns close to QR30m. Bank’s income from placement with financial institutions has tripled mainly from cash deployment in Shari’ah compliant money market funds.
QFB’s CEO, Ziad Makkawi, said: “Our private equity portfolio had consistently generated significant returns over the last six years. Our Turkish investments are still 47 percent higher than their acquisition price and will continue to grow in sales and profitability and occupy leading positions in their respective industries of Healthcare and Retail. Additionally, our UK investments are still significantly above our acquisition costs, both in Pounds and Riyals. However the ongoing global political and economic conditions continue to weigh on our markets and as a consequence on our overall profitability".
QFB aims to develop a distribution and placement capability that is empowered by its client centric approach.
