DOHA: Qatar Islamic Bank (QIB), Qatar’s leading Islamic lender, recorded a net profit of QR1.95bn for the year 2015, representing a strong 22 percent year-on-year increase.
Basic earnings per share reached QR8.27 compared to QR6.78 in December 2014. In line with the improved profitability, QIB Board of Directors proposed a profit distribution to shareholders of 42.5 percent of the nominal share value (QR4.25 per share), subject to approval of Qatar Central Bank and General Assembly.
Total assets increased by 32 percent compared to 2014 and now stands at QR127bn driven by a robust growth in the financing activities that have now reached QR87bn having added QR28bn, representing a 46 percent growth over 2014. Customer deposits have registered a strong growth of 37 percent and now stand at QR 92bn.
Total income for the year ended December 31, 2015 was QR4.5bn, registering a 24 percent growth compared to QR3.63bn for 2014. Income from financing and investing activities has grown by 26 percent to reach QR3.89bn at the end of 2015 compared to QR3.09bn for 2014, reflecting a healthy growth in the Bank’s core operating activities.
QIB was able to maintain the ratio of non-performing financing assets to total financing assets at less than 1 percent, one of the lowest in the industry. QIB continues to pursue the conservative impairment policy with the coverage ratio for non-performing financing assets reaching 113 percent as of December 2015, up from 102 percent as of December 2014. Total shareholders’ equity of the bank reached QR13.4bn, an increase of 7.6 percent as compared to December 2014. The Bank also raised Basel III compliant Additional Tier 1 Capital by issuing perpetual sukuk for an amount of QR2bn.
Sheikh Jassim bin Hamad bin Jassim bin Jaber Al Thani (pictured), Chairman of QIB, said: “these positive financial results reflect the successful implementation of the Bank’s strategy to grow its financing and investment activities during 2015. The Bank has also managed to strengthen the key performance and risk metrics through proactive financial and risk management.”
He added, “QIB remains committed to support the local economy through its innovative Shari’ah compliant solutions offered to its large number of corporate customers who are handling major national projects across different sectors. The Bank continues to recruit and invest in local talent and fulfill its responsibility as a corporate citizen through its support to a number of social initiatives.”
The Peninsula
