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QIB Profit grows by 10.3% to reach QAR 2,155 Million in 2016

QIB Profit grows by 10.3% to reach QAR 2,155 Million in 2016

18/01/2017, Doha,Qatar

Doha, Qatar 18 January, 2017: Qatar Islamic Bank (QIB) Chairman, Sheikh Jassim Bin Hamad Bin Jassim Bin Jaber AI Thani announced that QIB has achieved net profit of QAR 2,155 Million for the fiscal year 2016 compared to QAR 1,954 Million for the year 2015, thus marking an increase by 10.3% over last year.

Basic earnings per share reached QAR 8.55 compared to QAR 8.06 in December 2015. In line with the improved profitability, QIB Board of Directors proposed a profit distribution to shareholders of 47.5% of the nominal share value (QAR 4.75 per share), subject to approval of Qatar Central Bank and General Assembly.

Total Assets of the Bank has increased by 10% compared to 2015 and now stands at QAR 139.8 Billion driven by a robust growth in the Financing activities that have now reached QAR 98.2 Billion having added QAR 10.7 Billion, representing a 12% growth over 2015. Customer Deposits of the Bank have registered a positive growth of 4% compared to 2015 and now stand at QAR 95.4 Billion.

Total Income for the year ended 31 December 2016 was QAR 5,488 Million registering 22% growth compared to QAR 4,508 Million for 2015. Income from financing and investing activities has grown by 22%  to reach QAR 4,757 Million at the end of 2016 compared to QAR 3,893 Million for 2015, 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 1%, one of the lowest in the industry, reflecting the quality of the Bank’s financing assets portfolio and its effective risk management framework. QIB continues to pursue the conservative impairment policy with the coverage ratio for non-performing financing assets reaching 87% as of December 2016.

Total Shareholders’ Equity of the bank reached QAR 14.2 Billion, an increase of 6.4% as compared to December 2015. Following the issuance of another tranche of QAR 2 Billion perpetual Sukuk, the total Basel III compliant Additional Tier 1 Capital of the Bank now stands at QAR 4 Billion. Total Capital adequacy of the Bank under Basel III guidelines is 16.7% as of December 2016, higher than the regulatory minimum requirements prescribed by Qatar Central Bank and Basel Committee. 

His Excellency, Sheikh Jassim Bin Hamad Bin Jassim Bin Jaber Al Thani, Chairman of Qatar Islamic Bank, commented "these record financial results reflect the successful implementation of the Bank’s strategy and the commitment to continuously deliver value to all our stakeholders despite the enduring challenging global and regional economic conditions. While growing the business, our key priority remains to continue strengthening the key risk performance metrics through a proactive and conservative financial and risk management approach.”

“Our strategy is closely tied with Qatar’s National Vision 2030 and the Government’s commitment to investments in the country’s infrastructure, the diversification of the economy and the development of a strong private sector. QIB is a stable financial group with deep experience, covering all segments of the financial markets, including individuals, government institutions, large corporations and SMEs providing innovative Sharia-compliant banking solutions.” added Sheikh Jassim

Sheikh Jassim concluded the Board meeting by expressing his deep gratitude to QIB’s shareholders and clients for their trust in the Bank, and his appreciation to the Board of Directors and employees for their contribution and continuous efforts towards achieving positive results and continuous improvements

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 recognized 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. 

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