Qatar Islamic Bank (QIB), Qatar’s leading Islamic bank, on Monday, announced that the bank’s net profit attributable to shareholders amounted to QR855 million in the first quarter of 2022, representing a growth of 14 percent over the same period in 2021.
Total assets of the bank increased by 6.8 percent compared to March 2021 and now stand at QR193 billion, driven by the continued growth in financing and investing activities.
Financing assets reached QR127 billion having grown by 1.6 percent compared to March 2021 while customer deposits now stand at QR123 billion.
Total Income for the first quarter of 2022 was QR2,117 million with income from financing and investing activities registering a growth of 5.6 percent to reach QR1,857 million for the first quarter of 2022 compared to QR1,758 million for the same period in 2021.
The bank was also able to achieve a reduction in the cost of funding (profit paid to Sukuk and Unrestricted Investment Account holders) enabling growth in the net operating income.
Total operating expenses for the first quarter of 2022 were QR270 million, maintained around the same levels for the first quarter of 2021. Strong operating income generation and cost containment enabled the bank to further improve its efficiencies bringing down the cost to income ratio to 16.8 percent for the three months period of 2022 compared to 17 percent for the same period in 2021, which is the lowest in the Qatari banking sector.
QIB was able to manage the ratio of non-performing financing assets to total financing assets at 1.5 percent, similar to levels as of March 31, 2021 and one of the lowest in the industry, reflecting the quality of the bank’s financing assets portfolio and its effective risk management framework.
QIB continues to pursue the conservative impairment policy by building precautionary impairment charge on financing assets for QR519 million for the period ended March 31, 2022, and improving the coverage ratio for non-performing financing assets to 95 percent as of March 31, 2022 compared to 92.3 percent at the end of March 2021.
The total shareholders’ equity of the bank has reached QR20.3 billion. The total capital adequacy of the bank under Basel III guidelines is 18.8 percent as of March 2022, higher than the minimum regulatory requirements prescribed by Qatar Central Bank and Basel Committee.
In March 2022, Capital Intelligence Ratings (CI) also affirmed the bank’s Long-term Currency Rating (LTCR) of ‘A+’. In November 2021, Fitch Ratings affirmed the bank’s credit rating at ‘A’ and Moody’s Investors Service affirmed the Long-term deposit ratings at “A1”. In January 2022, Standard & Poor’s (S&P) affirmed the bank’s credit rating at ‘A-’.
Maintaining its longstanding position as the leading Islamic Bank as well as Digital Bank in Qatar, QIB was awarded twelve prestigious awards across several internationally recognised publications. These awards come in recognition of QIB’s continuous efforts in developing innovative digital banking solutions and services, further cementing its leadership in the banking sector in the region. It is also a testament to the bank’s strong financial performance and successful business strategies.
QIB received two distinguished awards from The Asset’s Triple A Digital Awards 2022 namely “Digital Bank of the Year” and “Best Mobile Banking App”.
The bank was awarded four prestigious accolades at Global Finance. In recognition of its outstanding position as the leading Islamic Bank in Qatar and its continuous efforts in meeting all customers, SMEs, and Corporates, QIB was named “Best Islamic Financial Institution in Qatar”, “Best Islamic Corporate Bank,” “Best Islamic Bank for CSR, by Global Finance,” and “Best SME Bank in Qatar.”
The bank has also been awarded with two prestigious titles at The Digital Banker Magazine’s the Middle East & Africa Innovation Awards 2022 — the “Outstanding Account Opening and Onboarding Initiative” and “Best Bank for Cash Management”, the Digital Banker. In addition, EMEA Finance, the leading finance magazine in Europe, the Middle East, and Africa, awarded QIB with the “Best product launch in the Middle East” title and the “Best Islamic Bank in Qatar” title for the fifth consecutive year.