The bank reported a loss of QR76.7mn during the period.
Ayman Zaidan, QFB head (Treasury and Investment Management), said, “As the global investment market continues to go through major challenges, QFB recorded revenues of QR185mn and a loss of QR76.7mn. 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 products for our individual and institutional clients.”
Despite these challenging economic factors that continue to have influence on the bank’s investment book, QFB total assets slightly decreased by 5.5% from the year end, and closed at QR5.6bn.
Moreover, the investment portfolio continued to generate healthy dividends, recording an income of QR7.5mn. QFB’s sukuk book also continued to generate positive returns resulted in an income of QR13.6mn, which is close to the same period of 2016.
Furthermore, the bank’s income from placement with financial institutions has increased by 24%, compared to the first half of same period, mainly from cash deployment in Shariah-compliant money market funds.
Additionally, the bank’s income from financing assets increased by 28.3%, compared to the same period of 2016, recording additional income of QR9mn.
In line with the results and the changes instituted during 2017, QFB’s management continued raising efficiency levels through the implementation of the cost rationalisation plan that resulted in a reduction of the expenses by 19.4% compared to same period of 2016.
On the private equity front, QFB’s investments in the healthcare sector has shown positive momentum during the first half of 2017. With regards to Memorial Healthcare Group, one of Turkey’s largest premier hospital chain, healthy growth has been achieved on both the revenue and EBITDA levels, benefiting from a relatively stable currency fluctuation.
QFB’s Turkish and UK investments, which were previously impacted by currency fluctuations and country-specific events, continued to be stable with slight improvements on the UK side. The team will continue to successfully manage the existing portfolio, as well as seeking out new lucrative opportunities. Besides, the management hopes that the portfolio will perform well in the years to come.
On the private bank front, despite economic challenges QFB increased financing assets by 3% compared to year end 2016 and has formed a stable deposit base, which stood at QR2.8bn.
Sulaiman al-Hashimi, chief business officer, said, “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; to reinvest the proceeds in lucrative opportunities that will contribute positively to the bank’s returns.”