Qatar First Bank (QFB), the country’s leading Shariah-compliant lender, has reported revenues of QR121.5mn in the first three months of this year.
The bank has been able to slash its net losses by 51% year-on-year to QR9.6mn in the review period.
“We envision that the global economic backdrop will remain challenging for the remainder of this year; however, we will continue to push ahead to develop innovative financial solutions and source attractive investment opportunities for our individual and institutional clients,” QFB acting chief executive Khaled Abdullah al-Khoori  said.
Total assets were down 3% to QR5.8bn compared to year-end 2016. However, the investment portfolio expanded 14% year-on-year and sukuk book by 14%.
The bank’s income from placement with financial institutions grew 46% year-on-year, mainly from cash deployment in Shariah-compliant money market funds, and income from financing assets by 42% to record additional income of QR6mn.
On the private equity front, QFB’s investments in Memorial Healthcare Group, one of Turkey’s largest premier hospital chains, achieved healthy growth on revenue and EBITDA (earnings before interest, taxes, depreciation and amortisation) levels, both growing 10% year-on-year, and benefiting from a relatively stable currency fluctuation.
As for QFB’s investment in Cambridge Medical and Rehabilitation Center in the UAE, significant growth was achieved with revenue growing more than 40% on a yearly basis, on the back of the repeal of the 20% co-payment mandate for inpatient long term care in late January 2017, in addition to the continued expansion in services and locations, both locally and regionally. During the same quarter, the bank sold the final two apartments on its development in Westbourne Grove, London.
“In line with our strategy, QFB will continue to optimise the existing investment portfolio book with the objective of maximising value to shareholders and clients; and to reinvest the proceeds in lucrative opportunities that will contribute positively to the bank’s returns,” al-Khoori said.
QFB’s alternative investments portfolio is within healthcare, energy, consumer finance, realty, industrial, retail, luxury, food and beverage; spread across diversified geographies. Since its incorporation, the bank has closed several deals across Qatar, Turkey, the UK, Africa and the Middle East and North Africa with carrying value of total equity investments (including subsidiaries) of QR1.49bn (March 31, 2017).
Over the years, the team has successfully exited seven investments in addition to two partial exits – the latest of which is selling 44% stake in one of the most successful leading healthcare platforms in the UAE – and all together generated healthy returns to shareholders with an average internal rate of return of more than 30%.
“Looking ahead we envision that the global economic backdrop will remain challenging. In spite of these challenges we will continue adopting an opportunistic outlook to source viable investment opportunities that surface in such market conditions in order to generate sound returns for the Bank, our clients and shareholders,” al-Khoori said.