QIIB posts net profit of QR785mn in 2016

QIIB has posted a net profit of QR785mn in 2016 even as the leading Islamic bank has seen its total revenues reaching QR1.7bn last year.
The results were announced by QIIB chairman and managing director Sheikh Dr Khalid bin Thani bin Abdullah al-Thani after a meeting of the bank’s Board of Directors in Doha yesterday.
QIIB board of directors made a recommendation to the ordinary general assembly of the bank’s shareholders for distribution of profits equivalent to QR4 per share. The profit distribution, however, will be contingent upon QCB’s approval of the bank’s year-end financial statements.
Sheikh Dr Khalid said, “The results of the bank confirm its competence and ability to contribute to the growth of the Qatari economy, which is advancing and booming in different fields, thanks to the support and care of HH the Emir, Sheikh Tamim bin Hamad al-Thani.”
“During 2016, QIIB witnessed many achievements, mainly the growth, seen and the adaptation to changes in the market, which posed several challenges that we have overcome, thanks to the great efforts of all employees of the bank.”
“The decrease in oil price and the competition in the market were a challenge as well as an opportunity for us at the same time. Every development in the market may have two sides. QIIB remains focused on taking advantage of these developments. In this context, the financial results were really encouraging and we are looking forward to achieving greater progress in the coming period,” Sheikh Dr Khalid said.
He clarified that “QIIB is still focusing on its activities on Qatar, given the fact that the local market is the most important and most adequate and based on our commitment towards the Qatari society and economy. We are committed to making it grow further.”
“At the same time, we do not disregard the special overseas opportunities, which entail low risks and provide good margin of profits. It is in this context that we have decided to enter Morocco, where we have got the approval of the Central Bank for the establishment of a Joint Venture bank in the Kingdom in partnership with Credit Immobilier et Hotelier S.A. (CIH Bank). We hope that the new bank starts its activities as soon as possible, especially because the Moroccan market is relatively new to Islamic banking and that the country’s citizens are keen to make banking transactions based on Shariah.”
Sheikh Dr Khalid confirmed that QIIB will continue its strategic plans in a phased manner, subject to all the requirements and developments in the market.”
QIIB chief executive officer, Abdulbasit Ahmad al-Shaibei, said, “QIIB’s total assets increased by 5% compared to that in 2015 to reach QR42.6bn, while deposits at the end of 2016 totalled QR26.6bn.
He said QIIB’s financing portfolio reached QR27.2bn in 2016 compared to QR25bn in 2015, which represents a growth of 9%.
Also, the capital adequacy under Basel III reached 19.47%, and this confirms the bank’s strong financial position and its ability to adapt to various requirements of the market.
“The 2016 results prove that QIIB could greatly adapt to the developments of the banking market, affirm its position, develop its tools, and enhance stability, which has been the bank’s hallmark since its establishment more than 25 years ago.
“The international rating agencies confirmed the strong position of the bank. In 2016, QIIB achieved strong credit ratings with ‘A2’ from Moody’s and ‘A+’ from Fitch, with a stable outlook from both the premier rating agencies”.
In 2016, al-Shaibei said, many departments were restructured within QIIB. “We also had a review of our branch network in Qatar. We have opened many new branches, especially in popular malls in the country, where we can provide multi-shift service to our customers. By opening new branches at popular malls, we are enriching the banking experience of our customers.
“The focus on electronic channels will continue in parallel to opening new branches. Special attention was given to the development of alternate channels such as Internet banking, mobile banking and call centre.”
As in the previous years, QIIB was keen to finance large projects such as infrastructure, industry and transportation, as well as other projects that form the basis of Qatar’s progress and development. We actually consider our contribution to the development of the nation an obligation, and not an option”.
With regard to QIIB’s expansion overseas, al-Shaibei said, “QIIB keeps moving forward, carefully, step by step, and chooses the right investments after due diligence. The bank’s most important investment last year was in Morocco, where we got the approval from the Central Bank of Morocco to establish a Joint Venture bank in partnership with Credit Immobilier et Hotelier S.A. (CIH Bank). This is an important step given the rich opportunities offered by the Moroccan economy”.