DOHA: Qatar Islamic Bank (QIB) recorded a net profit of QR1.34bn for the year 2013, up 7.6 percent compared to QR1.24bn posted a year ago.
Announcing the full-year results of the bank, Sheikh Jassim bin Hamad bin Jassem bin Jaber Al Thani (pictured), Chairman, said in line with the improved profitability, the Board of Directors have proposed a profit distribution of 40 percent of the nominal share value (QR 4 per share) to the shareholders against 37.5 percent distributed last year.
The financial results for 2013 along with the proposed distribution are subject to approval of Qatar Central Bank and QIB’s General Assembly, he said.
Total assets of the bank has increased by 5.7 percent compared to 2012 and now stands at QR77.4bn compared to QR73.2bn for the previous year. Financing activities continues to be the major growth driver and have now reached QR47.1bn having added QR4bn, representing a 9.3 percent growth compared to QR43.1bn last year.
Customer deposits of the bank registered a strong growth of 16.7 percent and now stand at QR50.4bn compared to QR43.1bn in 2012, allowing the bank to effectively fund its asset growth.
Total Income for the year ended 31 December 2013 has reached QR3,144m which is 1.3 percent higher than QR3,105m generated last year. Income from financing and investing activities has grown by five percent to reach QR2,804m at the end of 2013 compared to QR2,666m for 2012, reflecting a healthy growth in the bank’s core operating activities.
QIB was able to bring down the ratio of non-performing financing assets to gross financing assets to 0.9 percent compared to 1.6 percent for the previous year 2012, reflecting the quality of the Bank’s financing assets portfolio and its effective risk management framework.
The strong operating performance has enabled the Bank to pursue a conservative impairment policy by allocating QR360m towards improving the provision coverage on financial investments and financing activities compared to QR 491m in 2012. As a result the coverage ratio for non-performing financing assets reached 94 percent as at 31 December 2013 up from 62 percent as of 31 December 2012.
Total Shareholders’ Equity of the Bank increased by QR 386m to reach QR 11,860m, helping the Bank to improve its capital adequacy ratio to 16.5 percent.
Sheikh Jassim commented:”The Bank has increased business volumes across all market segments, which had positive impact on QIB’s end of year financial results, solidifying its position as a leading bank in Qatar. QIB has managed to implement successful risk management during 2013 strengthening all prudential ratios and building a strong foundation for future business expansion.”
He added: “QIB keeps on supporting the local economy, investing in local talent and continues to be a good corporate citizen by supporting government initiatives and donating to the ones in need.”
Sheikh Jassim expressed 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.