Qatar First Bank (QFB), a leading Shari’ah compliant bank based in Qatar, has reported a net loss of QR20.2m attributable to equity holders of the Bank for the third quarter ended September 30,2020, compared with a net profit of QR1.5m in the same period of 2019. QFB’s total income remained stable for the third quarter compared to the same period of 2019. However, the composition of total income was restructured as a result of the shift in the Bank’s strategy to focus on structured investment products. As a result of this strategic shift, income generated from structured investment products, which includes fee income, dividend income and gain on disposal of equity assets, increased by 169 percent reaching QR13.4m compared to QR4.9m in the same period of 2019.
On the expense side, strict cost controls introduced by the Bank has resulted in a total reduction in expenses by 28 percent while enhancing the efficiency levels. The Covid-19 pandemic had a limited impact on the Bank’s performance in the third quarter which impacted provisions by QR15.8m. Overall, QFB witnessed a stable improvement in financial performance where major performance indicators showed healthy growth trends compared to previous financial years despite the macroeconomic challenges. QFB’s Board of Directors commented, “As we are in the recovery phase of Covid-19, QFB’s level of resilience and agility has aided the Bank in pursuing its longterm plans.
QFB’s recent addition to its portfolio ‘Varsity Brands’ received an overw h e l m i n g response from investors and it was subscribed in record-time w h i l e o u r investment team focused on increasing the Bank’s assets through direct sourcing of funds from existing and new clients and offering structured investment products to our investors using multiple deals that generated higher risk-adjusted returns. As part of QFB’s strategy to focus more on structured investment products, during Q3 2020 we witnessed a strong contribution from this revenue stream” Highlights of the quarter included the appointment of Abdulrahman Totonji as the Bank’s Acting CEO.
Totonji has extensive experience in business management with a particular focus on managing local and international real estate investments. QFB’s latest acquisition, Varsity Brands, a three story, 135,0000 square foot building in Texas, USA, a timely addition to its income-generating real estate asset added to QFB’s diversified portfolio of investments.
Varsity Brands currently serves as the headquarters for BSN sports, which is the leading marketer, manufacturer and distributor of sporting goods apparel and equipment in the USA. As a measure to stabilize the Bank’s future income streams and reduce the cost of funding, QFB acquired an additional Sukuk investment which brings stable income. QFB’s share price continued to perform well during the quarter showing healthy growth compared to the last quarter and compared to the same quarter in 2019. The estimated year-on-year growth in QFB’s share was approximately 94 percent which is a testimony to QFB’s success in delivering value to its shareholders and investors.
