QIB profit grows by 15% to reach QR335m for three months ending 31st March 2014
Qatar Islamic Bank (QIB), Qatar’s leading Islamic Bank, has announced the results for 3 months ending 31 March 2014. Net Profit attributable to the Shareholders of the Bank amounted to QR335m for the first quarter of 2014 representing a growth of 15% over the first quarter of 2013. Total Assets of the Bank now stand at QR83bn having increased 21% compared to March 2013.
Financing activities has significantly increased in the first quarter of 2014 to reach QR49.2bn having grown 30% compared to March 2013 and 4% compared to December 2013. Customer Deposits of the bank have moved up to QR58.7bn registering a strong growth of 45% compared to March 2013 and 17% compared to December 2013 allowing the Bank to significantly improve its liquidity positions.
Total Income of the Bank grew by 14% compared to the first quarter of 2013 and reached QR840m for the 3 months ending March 2014. Income from financing activities was the primary growth driver which has increased by 21% compared to the first quarter of 2013 and reached QR580m for the 3 months ending March 2014. Net commission and fees income has also registered a strong growth of 57% compared to the first quarter of 2013 to reach QR85.6m for the 3 months ending March 2014.
Total Shareholders’ Equity of the bank increased by 3.5% to reach QR11.2bn by the end of the first quarter 2014. From Q1 2014, the Bank has started implementing QCB requirements under Basel III for the calculation of the Capital Adequacy Ratio (CAR). The ratio stood at 15.8% as at 31 March 2014, higher than the minimum regulatory requirement of 12.5% prescribed by Qatar Central Bank.
QIB was able to manage the ratio of non-performing financing assets to gross financing assets at 1.05%, 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 the coverage ratio for non-performing financing assets reaching 90% as of March 2014.
International credit rating agency, Capital Intelligence (CI) in its latest report issued in April 2014, has reaffirmed QIB’s Financial Strength Rating (FSR) of ‘A’, with an upgraded ‘Stable’ Outlook in view of the significant improvement in financing asset quality and stabilized Return on Average Assets. In 2013, Fitch had affirmed the Bank’s long term Issuer Default Rating (IDR) of ‘A’ with a stable outlook. Similarly Standard & Poor’s Rating Services have also maintained QIB’s Counterparty Credit Rating at “A-“with a stable outlook.
QIB has received a number of prestigious awards this year reflecting the results and achievements of the businesses, including the title of ‘Best Islamic Bank in Qatar’, which the Bank received from Euromoney, The Banker, World Finance and Islamic Finance News (IFN). World Finance also named QIB as ‘The Best SME Islamic Finance Provider’; while Global Finance voted QIB as ‘the Safest Islamic Bank in Qatar’. Meanwhile, Islamic Finance News (IFN) named QIB as both the ‘Arranger of the Syndicated Deal of the Year’ for its Ijarah Facility; and ‘Arranger in the Tawarruq Deal of the Year’ for its Murabahah Facility.
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