Doha: Qatar First Bank (QFB), the first independent Shari’ah compliant bank authorised by the QFC Regulatory Authority (QFCRA) and a listed entity on the Qatar Stock Exchange (QSE), has improved its balance sheet and overall liquidity position in 2020 due to increasing efficiency and expenditures rationalisation, said QFB Chairman Sheikh Faisal bin Thani Al Thani, who chaired the Bank’s Annual General Meeting (AGM) yesterday.
Due to an incomplete quorum, QFB’s Extraordinary General Assembly Meeting (EGM) was adjourned to April 12 at 3:30pm and will be held virtually via Zoom. Yesterday’s AGM was held virtually via Zoom with the attendance of the Board members, Bank’s shareholders, and senior management team.
During the meeting, the AGM discussed and approved all items on its agenda, in addition to the business plan for the financial year of 2021. The General Assembly also approved the annual report for the year ended on December 31, 2020; and confirmed the recommendations of the Board of Directors regarding non-distribution of dividends and not taking an optional reserve for the same financial period.
Addressing the event, Sheikh Faisal said: “Qatar’s response to the pandemic-related challenges in 2020 was truly exceptional, having taken timely measures to navigate both economic and healthcare challenges wisely, while providing relief measures to all business sectors during these challenging times. QFB’s relentless efforts to implement strict internal controls, increase operational efficiency and rationalise expenditures, also led to an improved performance, and in reducing overall expenses by 6.9 percent".
"In addition to a sustainable fee income stream, a drop in funding costs and with a better managed deposits book, have all helped improve the bank’s balance sheet and overall liquidity position”.
He added: “QFB has successfully emerged with a clear vision, and a mission to continue to add value to our shareholders and clients. QFB’s judicious move to shift towards a new operating model that invests in risk-adjusted yield-generating investment products, has generated growth. Our products have helped investors to access the US real estate market through a Shari’ah compliant platform which garnered an overwhelming response. The success achieved, and which reflects on all our financial indicators, comes as a result of our effective measures related to corporate governance, in addition to our clear strategic direction, and sourcing of profitable investments, as well as our prudent risk management and well-disciplined execution and monitoring processes”.
In 2020, QFB continued to achieve strong growth, having managed to reduce its overall net loss by 24 percent. The bank recorded a net loss of QR226.7m for 2020, compared with a QR298m loss for 2019. QFB ended 2020 successfully by posting a net profit of QR1.2m in its fourth quarter, with product fees and commissions being the main contributing factors.
During the meeting, the General Assembly also approved the annual corporate governance report for the period ended December 31, 2020; and approved to renew the appointment of Ernst & Young as the Bank’s external auditor for the year of 2021 and approved their fees.
