BY MOHAMMAD SHOEB
DOHA: The shareholders of Qatar Islamic Bank (QIB) yesterday gave the nod to the bank to raise up to QR5bn ($1.37bn) through a capital boosting Sukuk.
The Bank’s extraordinary general assembly (EGM) gave the approval to the bank for the issuance of unlisted Sukuk that shall be eligible for inclusion as Addition Tier 1 Capital in accordance with Basel III, in compliance with the instructions of Qatar Central Bank (QCB).
The issuance may be in a phased manner during the course of the year, and will depend on the need of capital. “We need to maintain a healthy Capital Adequacy Ratio (CAR) in compliance with Basel III guidelines,” Bassel Jamal, Group CEO of QIB, told The Peninsula after the EGM.
“It’s a Sukuk with long-term maturity. It is not convertible into shares… the existing shareholders’ ownership will remain undiluted,” he added.
The details such as the exact amount to be raised, currency and profit rate that the bank will pay, would be decided in consultation with the specially designated members. “Once it’s done, we will go back to the QCB for final approval.”
Gourag Hemani, Chief Financial Officer, QIB, said: “The bank will predominantly be trying to sell the Sukuk to government and institutional investors, as and when required. It’s not going to be a retail issue. Initially, we propose to issue it within Qatar.”
The new Basel III banking standard, due to come into full force in 2019, oblige banks to set aside more capital. QIB’s total capital adequacy ratio, a combination of Tier 1 and Tier 2 capital, stood at 14 percent at the end of 2014 against a 12.5 percent minimum prescribed by QCB.
The ordinary AGM and the EGM approved all the items in the agenda in their respective meetings, including the board of directors’ proposal to distribute 42.5 percent cash dividends of the nominal value per share, meaning QR4.25 per share.
Earlier, addressing the general assembly, Sheikh Jassim bin Hamad bin Jassim bin Jaber Al Thani, Chairman of QIB, said the Bank remains committed to support the local economy through its innovative Shariah-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.
QIB, Qatar’s largest Shariah-compliant lender by assets, recorded a net profit of QR1.6bn ($439.38m) for the year 2014, which represents a strong 20 percent increase compared to 2013.
Earnings per share (EPS) reached QR6.78, compared to QR5.65 in December 2013.
Total assets of the Bank increased by 24 percent compared to 2013 and now stands at QR96bn driven by a robust growth in financing activities that have now reached QR60bn having added QR13bn, representing a 27 percent growth over 2013.
The Peninsula
DOHA: Qatar Islamic Bank (QIB) is planning to move its headquarters to the upcoming Lusail City. The bank’s headquarters is currently located at the Grand Hamad Street, popular as Bank Street.
The country’s leading Shariah-compliant bank also announced plans to open several new branches in the country at strategic locations as part of its expansion, according to Bassel Jamal, Group CEO of QIB.
“We have some lands in Lusail City where we are going to move our head office. We are starting a project but it will take some time,” Jamal told The Peninsula on the sidelines of the Bank’s General Assembly meeting yesterday.
He added: “We are focusing on the refurbishment of some old and existing branches, and also intend to open three to five new branches in different parts of the country, including The Pear-Qatar, The Gate Mall and City Centre.”
The existing branch of QIB at the City Centre will be relocated within the mall. The new branch at the Qatar’s leading shopping complex will be much bigger in size compared to the existing one.
“The City Centre branch of QIB is very small. We are expanding the size of the branch as we intend to provide the best possible services to our customers,” said Jamal.
According to the QIB chief, the City Centre management is in the process of relocating all the bank’s branches in the mall to different locations but within the complex.
The Peninsula
