Posted on January 19, 2016

Qatar Islamic Bank (QIB), Qatar’s leading Islamic Bank, has announced a net profit (attributable to the shareholders of the Bank) of QAR 1.95 billion for the year 2015, which represents a strong 22% increase over 2014.

Basic earnings per share reached QAR 8.27 compared to QAR 6.78 in December 2014. In line with the improved profitability, QIB Board of Directors proposed a profit distribution to shareholders of 42.5% of the nominal share value (QAR 4.25 per share), subject to approval of Qatar Central Bank and General Assembly. Total Assets of the Bank has increased by 32% compared to 2014 and now stands at QAR 127 billion driven by a robust growth in the Financing activities that have now reached QAR 87 billion having added QAR 28 billion, representing a 46% growth over 2014.Customer Deposits of the Bank have registered a strong growth of 37% compared to 2014 and now stand at QAR 92 billion.

Total Income for the year ended 31 December 2015 was QAR 4,508 million registering 24% growth compared to QAR 3,633 million for 2014. Income from financing and investing activities has grown by 26% to reach QAR 3,893million at the end of 2015 compared to QAR 3,093 million for 2014, reflecting a healthy growth in the Bank’s core operating activities. QIB was able to maintain the ratio of non-performing financing assets to total financing assets at less than 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 policy with the coverage ratio for non-performing financing assets reaching 113% as of December 2015 up from 102% as of December 2014.

Total Shareholders’ Equity of the bank reached QAR 13.4 Billion, an increase of 7.6% as compared to December 2014. The Bank also raised Basel III compliant Additional Tier 1 Capital by issuing perpetual Sukuk for an amount of QAR 2 Billion. Total Capital adequacy of the Bank under Basel III guidelines is 14.1%,against the minimum limit of 12.5% prescribed by Qatar Central Bank. His Excellency, Sheikh Jassim Bin Hamad Bin Jassim Bin Jaber Al Thani, Chairman of Qatar Islamic Bank, commented "these positive financial results reflect the successful implementation of the Bank’s strategy to grow its financing and investment activities during 2015. The Bank has also managed to strengthen the key performance and risk metrics through proactive financial and risk management.”

He added, “QIB remains committed to support the local economy through its innovative Shari’a compliant solutions offered to its large number of corporate customers who are handling major national projects across different sectors. The Bank continues to recruit and invest in local talent and fulfill its responsibility as a corporate citizen through its support to a number of social initiatives.” Sheikh Jassim concluded the Board meeting by expressing his deep gratitude to QIB’s shareholders and clients for their trust in the Bank, and his appreciation to the Board of Directors and employees for their contribution and continuous efforts towards achieving positive results.

It is worth mentioning that International ratings agency Fitch, has upgraded QIB’s Long Term IDR to 'A+' from the previously held 'A' with a stable outlook. Capital Intelligence (CI) has rated QIB’s Financial Strength Rating (FSR) of ‘A’, with ‘Stable’ Outlook in view of the significant improvement in financing asset quality and stabilized Return on Average Assets. Standard & Poor’s Rating Services has retained QIB’s Counterparty Credit Rating at “A-“ with a stable outlook.

QIB has been recognized by several international financial publications and reports as one of the leading regional Banks in 2015, whereby the Bank has received 16 prestigious awards and top rankings reflecting the results and business achievements throughout the year.

During 2015, QIB has been awarded “Bank of The Year - Qatar” and, “Islamic Bank of the Year in the Middle East” for the first time, as well as “Islamic Bank of the Year in Qatar” for the third time in a row, by The Banker magazine (part of the Financial Times Group). QIB also received three awards from Global Banking & Finance review: Best Islamic Project Finance Bank - MENA, Best Islamic Finance Provider - Qatar, and Best Islamic Retail Bank - Qatar. The International Finance Magazine (IFM) has recognized QIB as the Best Islamic Bank in Qatar, Most Innovative SME Product Provider and Best Mobile Banking App. QIB’s Contact center was recently named as the best contact center in Qatar by Ethos Integrated Solutions benchmarking study.

QIB was listed by The Banker Magazine as the fastest growing financial brand in the world, with its brand value rising 91% over last year, making the Bank one of the top 50 most valuable brands across all industries in the MENA region. Furthermore, QIB’s Group CEO was recognized and honored at the TOP CEO Awards held by the Trends business magazine and the INSEAD Business School.