• July 18, 2017
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Qatar Islamic Bank releases 1st half 2017 financial results

 Qatar Islamic Bank (QIB), Qatar’s leading Islamic Bank, has announced the results for the six months period ended 30th June 2017. Net Profit attributable to the Shareholders of the Bank amounted to QAR 1,165 Million for the six months period ended 2017 representing a growth of 10% over the six months period ended 30th June 2016.

Total Assets of the Bank has increased by 9.2% compared to June 2016 and 5% compared to December 2016 and now stands at QAR 147 billion driven by growth in the financing activities.

Financing activities have now reached QAR 110 billion having grown by 13.6% compared to June 2016 and 11.7% increase compared to December 2016. Customer Deposits of the Bank now stand at QAR 97 Billion registering a growth of 2% compared to June 2016 and December 2016.

Total Income for the six months period ended 30th June 2017 is QAR 3,146 Million registering 18.4% growth compared to QAR 2,657 Million for six month period ended 30th June 2016. Income from financing and investing activities has grown by 22% to reach QAR 2,788 Million at the end of the six months period ended 30th June 2017 compared to QAR 2,283 Million for six months period ended 30th June 2016, reflecting a healthy growth in the Bank’s core operating activities.

Total expenses decreased by 1.5% to reach QAR 547 million for the six months period ended 30th June 2017 as compared to QAR 555 million for the six month period ended 30th June 2016. Strict cost controls supporting higher operating revenues enabled further enhancement of efficiency, bringing down the cost to income ratio to 25.3% for the first six months of 2017 as compared to 30.4% for the same period in 2016.

QIB was able to maintain the ratio of non-performing financing assets to total financing assets at around 1%, one of the lowest in the industry, reflecting the quality of the Bank’s financing assets portfolio and its effective risk management framework. QIB continues to pursue the conservative impairment provisioning policy with the coverage ratio for non-performing financing assets moving up from 87% as at December 2016 to reaching 118% as of June 2017.

Total Shareholders’ Equity of the bank has reached QAR 14.3 Billion. Total Capital adequacy of the Bank under Basel III guidelines is 16.6% as of June 2017, higher than the minimum regulatory requirements prescribed by Qatar Central Bank and Basel Committee.

In May 2017, Moody's Investors Service, ("Moody's") has for the first time assigned Long term deposit ratings to QIB at “A1”. In April 2017 Capital Intelligence Ratings (CI), has affirmed QIB’s Financial Strength Rating (FSR) at ‘A’. In April 2017, Fitch Ratings has also affirmed QIB’s Long Term Issuer Default Rating (IDR) at 'A+' and S &P has reaffirmed QIB’s rating at “A-“.

In light of QIB’s financial results, it has been recognized by several international financial magazines and reports as one of the leading banks in the region. During the first half of 2017, the Bank received a number of awards including the “Best Islamic Financial Institution in the GCC” from Global Finance, which also awarded it the “Islamic Product Innovator of the Year” and the “Best Islamic Financial Institution in Qatar”. QIB was also named the “Best Islamic Bank in Qatar - 2017” by The Banker - Financial Times. The Bank was also awarded the “Best Islamic Bank in Qatar” and “Perpetual Sukuk Deal of the Year” for 2016 from IFN. This is in addition to winning the “Best New Islamic Product” award from Visa International.

Re-disseminated by The Asian Banker