By Mohammad Shoeb
DOHA: Qatar Islamic Bank (QIB), the leading provider of Shariah-compliant banking services in the country, has posted a net profit attributable to the shareholders at QR1.05bn for the first six months of this year ended June 30, 2016, up 18 percent compared to the corresponding period last year.
Total assets have increased by 15 percent compared to June 2015 and now stand at QR135bn driven by continued growth in the financing activities.
Financing assets of QIB have now reached QR97bn having added QR20bn, representing 25 percent increase compared to June 2015. Customer deposits touched QR95bn and total shareholders’ equity has reached QR13bn. Total income for the first half (H1) has reached QR2.6bn against QR2.07bn reported in H1, 2015. Income from financing and investing activities reached QR2.28bn compared to QR1.80bn for the six month period ended June 30, 2015. Net fee and commission income reached QR268m compared to QR210m.
QIB was able to maintain the ratio of non-performing financing portfolio to gross financing portfolio to less than 1 percent, one of the lowest in the industry, reflecting the quality of the bank’s financing assets portfolio and its effective risk management framework. The bank continued to pursue the conservative impairment policy with a coverage ratio for non-performing financing portfolio at 93 percent as of June.
In April 2016, Fitch Ratings has affirmed QIB’s Long Term Issuer Default Rating (IDR) at ‘A+’ with a Stable Outlook reflecting the bank’s established franchise in Qatar, its sound asset quality, solid funding and liquidity profile with a franchise that is more diversified than that of many peers and taking into account the bank’s adequate profitability, and satisfactory capital and leverage ratios. Standard & Poor’s Rating Services has also retained QIB’s Counterparty Credit Rating at ‘A-’ and Capital Intelligence has reaffirmed QIB’s financial strength rating of ‘A’ with stable outlook.
In light of the bank’s positive results, QIB has been recognised by highly reputable international financial publications and reports as one of the leading regional banks. Among a number of important awards, for the second year in a row, The Banker - Financial Times Group, named QIB the “Islamic Bank of the Year in the Middle East”, while 2016 also marks the fourth consecutive time that QIB was selected as Qatar’s ‘Islamic Bank of the Year’. QIB was named for the first time “Qatar’s Best Bank” by Euromoney Awards for Excellence 2016 as well as “Best Islamic Retail Bank in the world” for 2016 by Global Finance. One of QIB’s latest commendations goes to its Group CEO, Bassel Gamal, who was ranked the first of 100 best-performing CEOs of listed companies in the GCC states from TRENDS & INSEAD Business School.
The Peninsula
