ibq’s net profit grows by 20%

 20 Jul 2017 - 1:03

ibq’s net profit grows by 20%

The Peninsula

International Bank of Qatar (ibq) recorded a net profit of QR278m for the first half of 2017 (H1 2017), reflecting a 20 percent growth compared to the corresponding period in 2016. The first half result also shows a 17 percent increase in the bank’s total operating income.
The bank’s  asset quality remained stable, with the non-performing loan ratio at 1.19 percent. ibq’s net interest margin, return on average assets and most operating metrics continued to improve, while the bank’s return on average equity now stands at a healthy 12.3 percent, compared to 10.8 percent last year
All business segments contributed positively to the total operating income result with Corporate Banking delivering a stellar set of first half results. Expenses continued to be tightly managed with the cost income ratio showing a 13 percent reduction from last year, as ibq successfully controlled the day to day operating model while retaining oversight on good corporate governance
“This strong set of results is the outcome of ibq’s focus on deepening its exceptional client franchise, maintaining conservative risk management, and delivering consistently high standards of service quality to its customers,” said Omar Bouhadiba (pictured), Managing Director, ibq.
“We are as happy with the growth of our revenues, as we are with their quality, given that they are client driven, sustainable and with very little non-recurring items.”
“As we progress into the second half of 2017, ibq’s liquidity remains comfortable and the bank’s deal pipeline firm. ibq continues to invest in its infrastructure to enable it to deliver better client solutions, upgrade its IT systems, and continuously improve its security platforms to ensure client data is safeguarded,” he said.
Over the last few months, the bank has continued to de-risk its balance sheet and reduce its reliance on wholesale interbank funding.
These factors coupled with the current situation resulted in some contraction in total assets even though loans and advances remained stable, while the bank relies on client deposits and deepening relationships to fund its asset book.  
 “While navigating the unchartered waters produced by the recent external geopolitical events has been a challenge, we believe that Qatari banks remain solid institutions with adequate liquidity, experienced management and strong capital ratios. They are perfectly able to overcome any difficulty that may arise from these unusual circumstances,” Bouhadiba stressed.
“We anticipate ibq delivering a solid financial performance this year as we continue to focus on fundamentals, putting the needs of clients first, providing the best possible service and managing risk,” he added.