Doha: Qatar First Bank (QFB), a leading Shari’ah compliant bank based in Qatar and listed on the Qatar Stock Exchange (QSE), has managed to significantly reduce its net loss during the half-year 2020.
QFB's financial results for the the six-month period ending June 30, 2020, showed a net loss of QR202m, down by 35 percent compared with a net loss of QR310m for the same period last year.
Net loss was incurred mainly due to COVID-19 impact on the performance of the bank’s assets. QFB continued implementing a cost rationalisation initiative to decrease its total costs, alongside implementing a risk-adjusted income-generating strategy to enhance its returns and shareholder value. As a result, the total costs (excluding one-off impairment costs) were reduced by 27 percent during the first half of the year compared to the same period last year.
In a statement, QFB’s Board of Directors said: “As the COVID-19 global pandemic effected all industries around the world, the overall banking industry in Qatar witnessed a mild weakening effect on profitability due to the market slowdown. QFB’s efficient risk management framework and cautious liquidity measures ensured that there is only minor impact to its core banking activities.
We affirm that QFB is gaining benefits from its revised strategy where our income streams are showing continuous growth momentum along with progressive operational performance and positive financial indicators. We further applaud the effort taken by the government and regulators to ensure the strength and security of the local economy”.
Earlier in January, QFB acquired 90 North Corporate Campus, a four-building, 262k-square-foot office campus located in Bellevue, Washington, in the US. The bank has also existed a second aviation deal through the sale of a Boeing 737-900ER aircraft.
QFB continues to gain from its revised strategy shifting the bank’s operating model to focus on investing in risk-adjusted yield-generating structured investment products syndicated to the bank’s investor-base. In addition, the bank continues its precautionary measure to address possible risks associated with changing market conditions and create adaptive strategies.
