Doha: Sheikh Jassim bin Hamad bin Jassim bin Jaber Al Thani, Chairman of Qatar Islamic Bank (QIB) announced yesterday that QIB has achieved net profit attributable to shareholders of QR3.065bn for the fiscal year 2020 compared to QR3.055bn for the year 2019, despite the impact of COVID-19 and the decline in oil prices. The Bank maintained the basic earnings per share at QR1.21.
QIB Board of Directors proposed a dividend distribution to shareholders of QR0.40 per share i.e. 40 percent of the nominal share value, subject to approval of Qatar Central Bank and QIB’s General Assembly.
Total Assets of the Bank has increased by 6.6 percent compared to 2019 and now stands at QR174.4bn driven by a growth in the core banking activities. Financing activities registered a robust growth by 4.7 percent over 2019 to reach QR119.1bn. Customer Deposits of the Bank now stand at QR118.1bn registering a growth by 5.8 percent compared to December 2019.
The Bank’s strong liquidity position in the current challenging environment is reflected in a healthy Financing to Deposit ratio of 101 percent and execution of new Sukuk issuances for $1.65bn in 2020. QIB became the first bank ever, globally, to access the Formosa market in the Islamic format through issuance of $800m of Sukuk listed on the Taipei Stock Exchange.
Total Income for the year ended December 31, 2020 reached QR8bn registering 2.8 percent growth compared to QR7.7bn in 2019, despite sharp drop in global interest rates and the support provided to the customers impacted by COVID-19 pandemic. Income from financing and investing activities has grown by 3.4 percent to reach QR7.2bn at the end of 2020 compared to QR6.9bn for 2019, reflecting a healthy growth in the Bank’s core operating activities.
Sheikh Jassim bin Hamad bin Jassim bin Jaber Al Thani, Chairman of QIB
Total general and administrative expenses of QR1.09bn for the year ended December 31, 2020 were contained 1 percent below the year ended December 31, 2019. Strict cost controls supporting higher operating revenues further improved the bank’s efficiency, bringing down the cost-to-income ratio to 20.1 percent for 2020, which is the lowest in the Qatari banking sector.
QIB was able to manage the ratio of non-performing financing assets to total financing assets at 1.4 percent, one of the lowest in the industry, reflecting the quality of the bank’s financing assets portfolio and its effective risk management framework.
Given uncertainties related to long-term impact of the pandemic on various business segments and geographies in which clients operate, the bank created precautionary impairment charge on financing assets for QR1.26bn in the year ended December 31, 2020, which is more than double the amount set aside in the previous year. QIB continues to pursue conservative impairment policy maintaining a healthy 92 percent coverage ratio for non-performing financing assets as of December 2020. The Bank continues to take necessary actions and precautions for safety and well-being of its employees, customers and to community at large.
Total Shareholders’ Equity of the bank reached QR18.3bn, an increase of 6.8 percent as compared to December 2019. As of December 2020 the Total Capital adequacy of the Bank under Basel III guidelines is 19.4%, well above the regulatory minimum requirements prescribed by Qatar Central Bank and Basel Committee.
“2020 was a year of unprecedented challenges for almost every individual and organization across the globe disrupting the way we live and conduct our business. Despite strong headwinds, QIB has maintained strong and steady financial performance, ensured business continuity and continues to support all our customers to efficiently manage their banking and funding requirements,” Sheikh Jassim bin Hamad bin Jassim bin Jaber Al Thani.
“I am pleased with the way we have addressed the challenges while keeping safety and security of our staff, customers and community as our utmost priority. Digital Banking has been a core pillar of our business strategy and the infrastructure built over the last few years enabled us to quickly introduce even more digital banking solutions that allowed all our customers to bank with us remotely 24/7 and to fulfill all their banking needs during these extraordinary times,” he said.
Sheikh Jassim bin Hamad bin Jassim bin Jaber Al Thani said, “This year’s financial results confirm the Bank’s strong foundation and reflect the firmness, resilience and stability of Qatari banking sector and the national economy. Our sustainable and stable business model has been recognized through our credit ratings from all the international rating agencies and translated into numerous recognitions and awards by the most credible international financial publications.”
“As we enter into the new fiscal year, we have affirmed our position as leading Islamic Bank while maintaining the position as the second largest Bank in the country. QIB today has the means, resources and qualifications to continue delivering premium banking services to all QIB customers. We are dedicated to delivering value to all our stakeholders and offering our customers modern, convenient and timely banking solutions”, said Sheikh Jassim.
“The Bank’s future development plans are in line with the Qatar National Vision 2030. QIB is committed to support the diversification of Qatar’s local economy and the development of its strong private sector. We remain focused on continuously enhancing our technology platforms to preempt and satisfy the changing client needs in digital era, improve our level of services and continue helping our customers and partners succeed”, he added.
