Qatar Islamic Bank (QIB) has posted a net profit of QR2.15bn in 2016, up 10.3% on the same period last year.
Basic earnings per share reached QR8.55 in December 2016 compared with QR8.06 in the same period in 2015, QIB chairman Sheikh Jassim bin Hamad bin Jassim bin Jaber al-Thani announced in Doha yesterday.
In line with the improved profitability, QIB board of directors proposed a profit distribution to shareholders of 47.5% of the nominal share value (QR4.75 per share), subject to the approval of the Qatar Central Bank and the general assembly.
QIB’s total assets jumped by 10% compared to 2015 and now stand at QR139.8bn, driven by robust growth in the financing activities that have now reached QR98.2bn. Customer deposits registered a positive growth of 4% compared to 2015 and now total QR95.4bn.
QIB’s total income for the year that ended on December 31, 2016 was QR5.4bn, up 22% on QR4.5bn in 2015.
Income from financing and investing activities has grown by 22% to reach QR4.75bn in end-2016 compared with QR3.8bn in 2015, reflecting a healthy growth in the bank’s core operating activities.
QIB said it was able to maintain the ratio of non-performing financing assets to total financing assets at 1%, 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 with the coverage ratio for non-performing financing assets reaching 87% as of December 2016.
QIB’s total shareholders’ equity reached QR14.2bn, an increase of 6.4% compared to December 2015.
Following the issuance of another tranche of QR2bn perpetual sukuk, the total Basel III-compliant additional Tier 1 capital of the bank now stands at QR4bn.
Total capital adequacy of the bank under Basel III guidelines is 16.7% as of December 2016, higher than the regulatory minimum requirements prescribed by the QCB and the Basel Committee.  
Sheikh Jassim said, “These record financial results reflect the successful implementation of the bank’s strategy and the commitment to continuously deliver value to all our stakeholders despite the enduring challenging global and regional economic conditions. While growing the business, our key priority remains to continue strengthening the key risk performance metrics through a proactive and conservative financial and risk management approach.”
“Our strategy is closely tied with Qatar’s National Vision 2030 and the government’s commitment to investments in the country’s infrastructure, the diversification of the economy and the development of a strong private sector. QIB is a stable financial group with deep experience, covering all segments of the financial markets, including individuals, government institutions, large corporations and SMEs providing innovative Shariah-compliant banking solutions,”  Sheikh Jassim added.
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 and continuous improvements.”
In April 2016, Fitch Ratings affirmed QIB’s long term issuer default rating (IDR) at ‘A+’ with a stable outlook, reflecting the bank’s established franchise in Qatar, its sound asset quality, solid funding and liquidity profile.
Standard & Poor’s Rating Services also retained QIB’s counterparty credit rating at ‘A-’ and Capital Intelligence reaffirmed QIB’s financial strength rating of ‘A’ with stable outlook.