Lesha Bank posted a net profit of QR75.5mn in 2022, “recording its second consecutive full year of profit and ninth consecutive quarter of profitability.”
Achieving both key financial and non-financial indicators, the bank maintained sustainable fee income streams, leading to a stronger balance sheet and an improved liquidity position.
Total equity attributable to Lesha Bank’s shareholders increased to QR1.1bn at the end of 2022, in part supported by the bank’s successful completion of the “Rights Issue” process, which added QR500mn to the equity.
Simultaneously, the capital adequacy under Basel III regulations reached 20.5% at the end of the year, further affirming the bank’s financial position.
The bank’s total assets under management (AUM) reached QR5.2bn, an increase of 36% over the previous year.
Total assets for the period (up to December 31, 2022) stood at QR5.2bn, registering a growth of 64% compared to QR3.2bn in 2021.
Meanwhile, total deposits reached QR3.1bn for the same period, representing 63% growth compared to QR1.9bn for the previous year.
Lesha Bank recorded a significant growth in its fee and dividend income from QR44.1mn to QR80.1mn, representing an 81% increase partially because of its business model shift from an asset-based model to a fee income-based model.
Its focus on real estate investments and private equity business has further accelerated the recurring streams of revenue.
During the year, the bank’s sukuk portfolio increased from QR271mn to QR1bn and the income from sukuk portfolio increased from QR12.4mn to QR30.3mn, registering a significant growth of 145%.
In 2022, Lesha Bank completed its real estate acquisition in the United States, the Gateway Plaza building in Virginia, while successfully exiting Jefferson Square in Baltimore, Maryland.
The bank made private equity transactions during 2022 along with its clients of QR1.3bn, which includes financing to Qatari investors to acquire a 10.8% stake in the lifestyle hospitality company, Ennismore.
Commenting on its year-end financial results, Lesha Bank chairman Sheikh Faisal bin Thani al-Thani said, “As we successfully conclude Lesha Bank’s second consecutive full year of profit, our forward momentum on the financial and non-financial indicators is supported by a strategic approach that aims to turn innovative investment opportunities into sustainable, long-term growth for investors in Qatar and beyond.
“In navigating the indisputable global challenges of 2022, our business team’s resilience and agility have strengthened our role as a key player in Qatar’s economy, paving the way towards higher standards of governance, integrity, and investor trust.”
Lesha Bank CEO Abdulrahman Totonji commented: “Alhamdullilah, we have completed a challenging yet truly rewarding year that has resulted in successes and improved certain performance, partially driven by prudent controls and resolute measures that helped us build a steady stream of income and a strong balance sheet.
“In our work as a leading Shariah-compliant player in investment banking, Lesha Bank’s success is closely tied to the positive contributions of all our stakeholders, and team members who continue to strive for excellence across our business.”
Lesha Bank is the first independent Shariah-compliant Bank authorised by the QFC Regulatory Authority and a listed entity on the Qatar Stock Exchange.
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