Aided by robust core earnings, Qatar Islamic Bank (QIB) has reported 22% increase in net profit to QR1.95bn in 2015 and suggested 42.5% cash dividend to shareholders.
Total assets grew 32% to QR127bn, driven by robust growth in the financing segment, which registered a 46% growth to QR87bn.
Customer deposits reported a strong growth of 37% to QR92bn.
Total income stood at QR4.51bn, registering a 24% growth with earnings from financing and investing expanding 26% to QR3.89bn at the end of 2015, 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.
The Islamic lender continues to pursue conservative impairment policy with the coverage ratio for non-performing financing assets reaching 113% in 2015, up from 102% in the previous year.
Total shareholders’ equity reached QR13.4bn, an increase of 7.6%. The bank also raised Basel III-compliant additional Tier 1 capital by issuing perpetual sukuk for QR2bn.
Total capital adequacy of the bank under Basel III guidelines is 14.1%, against the minimum limit of 12.5% prescribed by the Qatar Central Bank.
“These positive financial results reflect the successful implementation of the bank’s strategy to grow its financing and investment activities during 2015. The bank also managed to strengthen the key performance and risk metrics through proactive financial and risk management,” according to QIB chairman Sheikh Jassim bin Hamad bin Jassim bin Jaber al-Thani. “QIB remains committed to supporting the local economy through its innovative Shariah-compliant solutions offered to its large number of corporate customers who are handling major national projects across different sectors.”
International ratings agency Fitch has upgraded QIB’s long term issuer default rating to “A+” from “A” with a stable outlook. Capital Intelligence rated QIB’s financial strength rating at “A” with stable outlook in view of the significant improvement in financing asset quality and stabilised return on average assets.
Standard & Poor’s has retained QIB’s counterparty credit rating at “A-” with a stable outlook.