Doha: Qatar Islamic Bank’s (QIB) net profit attributable to the Shareholders of the Bank amounted to QR1.42bn for the six months’ period ended June 2020 in line with the performance during the same period in 2019.
QIB’s total assets now stands at QR165.8bn, higher by 1.4 percent compared to December 2019 and a growth of 7.2 percent compared to June 2019 driven by the continued growth in the financing and investing activities.
The bank’s financing activities have now reached QR112.3bn having grown by 5 percent from a year ago. Customer Deposits of the Bank now stand at QR106.6bn in line with June 2019.
Total Income for the six months’ period was QR3.97bn registering a growth of 6.4 percent compared to QR3.73bn for the same period in 2019. Income from financing and investing activities has registered a growth of 5.2 percent to reach QR3.55bn on year-on-year, reflecting a healthy performance in its core operating activities despite the support provided to the customers impacted by Covid-19 pandemic.
Total expenses for the first half of 2020 was QR551m. Strict cost controls supported by higher operating revenues enabled further enhancement of efficiencies with cost to income ratio improving from 23.5 percent to 21.1 percent in the first, the best in the Qatari Banking sector.
QIB’s efficient risk management framework has ensured that the results for the period ended 30 June 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 1.4 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 QR602m in the first half of 2020 compared to QR298m 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 QR16.8bn up by 7.6 percent compared to June 2019. Total Capital adequacy of the Bank under Basel III guidelines is 18.6 percent as of June 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.
In the first half of 2020, QIB has received 17 prestigious awards from well-respected international publications.
As a testament to its leadership in the financial sector, QIB was awarded “Best Islamic Bank in the Middle East and Qatar” by The Banker magazine (Financial Times Group) as well as “Best Islamic Bank in Middle East and Qatar” and “World’s Best Islamic SME Bank” by Global Finance magazine. QIB received “Qatar’s Best Digital Bank” and “Best Mobile Banking App” by The Asset magazine, a leading financial publication in Asia-Pacific.
Furthermore, QIB received four awards from the Asian Banker magazine: “Best Islamic Retail Bank in the Middle East and Qatar”, “Best Digital Bank in Qatar” and “Best SME Bank in Qatar”. It has been also recognized as the “Best Islamic Bank in Qatar” by Islamic Finance News (IFN) readers, the world’s leading Islamic finance publication; and was named the “Best Islamic Bank in Qatar” in the Middle East Banking Awards, presented by EMEA Finance, the leading finance magazine in Europe, Middle East and Africa.
These awards come in recognition of the significant progress QIB has made in establishing itself as a leading banking institution in the Middle East, while cementing its leadership position in Qatar.
