QInvest, Qatar’s leading investment group, has reported a 76% jump in net profit to QR154mn and also suggested doubling of dividends to shareholders for 2015.
The lender generated consistent performance throughout 2015 despite challenging global economic conditions and regional volatility, also culminating into a 32% increase in revenues.
“2015 was a record year for QInvest and the culmination of the strategy we set three years ago. The bank has achieved every one of its objectives, not only in terms of financial performance but also in terms of creating value for clients and shareholders. All our three revenue generating divisions are delivering robust growth and are backed by a solid balance sheet,” Tamim Hamad al-Kawari, chief executive of QInvest, said.
Its debut $200mn long-term syndicated facility, arranged by its key regional and global relationship banks, strengthened its capital base further, he said.
QInvest is entering 2016 to launch the next phase of its strategy, which is centred on the execution of high quality international and regional transactions and provision of innovative and value enhancing products to both shareholders and expanding client base, he said.
“Looking ahead, we expect the global economy to continue to be challenging but we will remain focused on transactions that fit within the bank’s overall risk-return profile coupled with prudent monitoring of our existing investments,” according to al-Kawari.
Highlighting that the bank’s investment banking division had a busy and successful year, QInvest said the financing business completed a wide range of corporate transactions, deploying about $300mn, part of which were successfully syndicated to various institutional investors.
The debt capital markets franchise continued to strengthen and despite volatile market conditions was active on a number of mandates for sovereigns, financial institutions and corporates.
Notably, the team acted as joint lead manager and book runner on Noor Bank’s debut $500mn senior sukuk, which was oversubscribed by more than four times, Albaraka Turk’s $250mn Tier II sukuk and Qatar Islamic Bank’s $750mn senior sukuk and QR2bn Tier I sukuk.
The mergers and acquisitions team remained active on a number of high profile transactions, most notably the acquisition of a Turkish retail group by a Qatari client. The team is involved in a number of buy-side and sell-side mandates across multiple industries and geographies for both family offices and institutional investors.
“Despite equity capital markets being more subdued in 2015, the team is currently mandated on a number of potential IPOs (initial public offerings),” a bank spokesman said.
Principal investments generated robust performance in 2015. In the real estate sector, the business is at various stages of execution and completion on income generating transactions in London, elsewhere in Western Europe and in the US.
Most notably, QInvest completed its investment in a portfolio of 16 retail properties across Germany, which is currently being offered for co-investment to clients, and is in “advanced discussions” on a new serviced apartment project in the UK, which will also be available for co-investment to clients.
The team has concluded additional mezzanine transactions in the US and continues to search for value additive and residential development opportunities in London and other geographies on co-investment basis.
Moreover, they have provided financings of almost $100mn to real estate corporate clients and deployed more than $135mn in real estate equity investments.
QInvest made a select number of equity investments, deploying nearly $50mn in various transactions. These took the form of both direct co-investments and fund investments alongside leading investment groups.
Following exits in 2014, the historical portfolio of principal investments was reduced significantly, and this trend continued throughout 2015.
During 2015, the asset management division generated strong assets under management growth of 75% year-on-year, reflecting its robust investment process and track record.
The growth was underpinned by the continued expansion of ‘QMAP’, QInvest’s pioneering open architecture Shariah-compliant managed account platform.