QIB net profit rises 8pc to over QR1.36bn Tuesday, 21 February 2012 23:52

DOHA: QIB has achieved net profits reaching a little over QR1.36bn in 2011, an increase of 8 percent over 2010. The core business of the bank has grown strongly, leading to an 18 percent increase in net operating income which reached QR2.68bn at the end of 2011 compared to QR2.28bn in the corresponding period of last year.

The bank’s total equity reached QR11.2bn by end of 2011, an increase of 24 percent against same period of 2010. The increase in net profit was the result of the growth in investment income which amounted to QR631m at the end of 2011 compared to QR214m for the corresponding period.

Return on Average Equity (ROAE) stood at 16 percent and at the end of 2011. Earnings per share (EPS) – basic and diluted – at QR5.87 was on par with the same period of the previous year. Net financing & investing income was QR2.4bn and grew by QR442m or 22 percent from 2010. Fee income was QR300m compared to QR289.2m in 2010 showing year-on-year increase of  3.8 percent.

Unrestricted Investment Account holders’ share of profit was QR410m compared to QR447m  in 2010, a decrease of 8 percent. Also sukuk holders’ share of profit was QR105.8m at the end of 2011 compared to QR24.5m in 2010.

Total Assets of the bank stood at QR58.3bn, a growth of 12.4 percent compared with QR51.9bn in 2010. The group Return on Average Assets stood at 2.5 percent, reflecting an efficient asset management strategy.

Sheikh Jassim bin Hamad bin Jassim bin Jaber Al Thani, Chairman, said: “In 2011, QIB has succeeded in launching top products and banking solutions for personal and corporate customers, as well as new banking initiatives to serve new customer segments. QIB has also developed its alternative channels by leveraging the latest banking technologies and expanding the services of this sector to better serve its customers.

The value of the Financing Portfolio was QR29.6bn at the end of December 2011 compared to QR29.3bn for the corresponding period of 2010. The Investment Portfolio witnessed very buoyant growth of 173.3 percent, increasing from QR6.2bn last year to QR16.9bn this year, resulting from the risk-free investment in government sukuk. Customers Current and Investment Accounts were QR27.7bn at the end of 2011 compared to reach QR30.4bn in the same period of 2010.

The strong results confirm that QIB has successfully implemented its business plan for the fourth year of its five-year strategy (2008-2012).  These results reflect the bank’s capabilities, its sound financial and risk management and a wise adaptation to the local and international financial developments, which has had a positive impact on shareholders and customers.

The announcement of the financial results comes on the back of a strategic transformation programme that the bank is implementing with a view to restructuring both its local operations and its affiliates in order to build a strong banking group with regional and international presence offering Islamic financial solutions that meet the expectations of its shareholders, customers and strategic partners.

QIB witnessed enhanced levels of activity in the year just passed, through opening channels of co-operation with big governmental institutions as well as with semi-governmental companies in the transport, infrastructure and energy industry sectors. The bank financed many companies within these sectors, or participated in joint projects with other financial institutions, one example being the joint-financing of the Barzan gas project.

The Peninsula

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