QIB posts net profit of QR2.216bn for nine months

October 15, 2020

Doha: Qatar Islamic Bank’s (QIB) net profit attributable to the Shareholders of the Bank stood at QR2.216bn for the first nine months of this year ended September 30, 2020, which is in line with the performance during the same period in 2019.

Total assets of the Bank now stands at QR170bn, up 4 percent compared to December 2019 with a growth of 9.8 percent compared to September 2019 driven by the continued growth in the financing and investing activities.

Financing activities of the Shariah-compliant lender have now reached QR113.2bn by the end of September 30, 2020 registering a year-on-year growth of 5.7 percent compared to September 2019. Customer deposits of the Bank now stand at QR112bn, 5 percent higher compared to September 2019.

Total income for the nine months’ period ended September 30, 2020 was QR5.961bn compared to QR5.710bn for the same period in 2019 showing a growth of 4.4 percent. Income from financing and investing activities has registered a growth of 4.9 percent to reach QR5.364bn compared to QR5.113bn for the same period in 2019, reflecting a healthy performance in its core operating activities despite the support provided to the customers impacted by COVID-19 pandemic.

Total operating expenses for the nine months’ period ended September 30, 2020 decreased to QR821.9m from QR827.8m for the same period in 2019. Strict cost controls supported by higher operating revenues enabled further enhancement of efficiencies with cost to income ratio improving from 23.4 percent to 20.5 percent for the nine months period ended 30 September 2020, the best in the Qatari banking sector.

QIB’s efficient risk management framework has ensured that the results for the period ended 30 September 2020 have not been materially impacted by the events related to COVID-19. QIB was able to contain the ratio of non-performing financing assets to total financing assets at 1.3 percent reflecting the quality of the Bank’s financing assets portfolio. QIB continues to pursue the conservative impairment provisioning policy and has more than doubled the financing impairment charges to QR960.6m in the nine months of 2020 compared to QR446.9m in 2019 and continues to maintain 100 percent coverage ratio for non-performing financing assets. The Bank continues to take necessary actions and precautions for safety and well-being of its employees, customers and to the community at large.

Total Shareholders’ Equity of the Bank has reached QR17.7bn up by 7.8 percent compared to September 2019 and higher by 3.1 percent compared to December 2019. Total Capital adequacy of the Bank under Basel III guidelines is 18.3 percent as of September 2020, higher than the minimum regulatory requirements prescribed by Qatar Central Bank and Basel Committee.

In June 2020, Moody’s Investors Service, (“Moody’s”) has affirmed the Long-term deposit ratings of QIB at “A1” with a Stable outlook. In November 2019, Fitch Ratings affirmed Qatar Islamic Bank at ‘A’ with a Stable outlook. In April 2020, Standard & Poor’s (S&P) affirmed the Bank’s credit rating at ‘A-’ with a Stable outlook. In May 2020, Capital Intelligence Ratings (CI) has affirmed the Bank’s Long-term Currency Rating (LTCR) of ‘A+’ with a Stable outlook.

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