Qatar Islamic Bank (QIB) has reported a 7.5% year-on-year increase in net profit to QR4.31bn for the fiscal year 2023 and has declared a 72.5% dividend to shareholders.
Basic earnings-per -share were QR1.73 compared to QR1.62 for the year ended December 31, 2022. The board has proposed a dividend of QR0.725 per share, subject to approval of the Qatar Central Bank (QCB) and QIB’s general assembly.
Total assets grew 2.8% to QR189.2bn, primarily driven by financing and investing. Financing has reached QR122.4bn, having grown by 2.6% on a yearly basis and investment securities at QR48bn, up 4.9% against December 2022.
Customer deposits were QR120.8bn at the end of December 31, 2023 with financing-to-deposit ratio at 96.5% compared to the QCB maximum requirement of 100%, reflecting the bank’s strong liquidity position.
Total income expanded 24% to QR11.1bn. Income from financing and investing saw a robust growth of 27.2% to QR10.1bn.
Income from financing grew 32% to QR8.6bn and net income from investing by 5.8% to QR1.5bn at the end of December 31, 2023.
Net fee and commission income saw a healthy growth of 9.7% to QR889.2mn, reflecting positively on the bank’s core operating and banking services activities.
Total general and administrative expenses were QR1.1bn for the year ended December 31, 2023 and were maintained almost at the same levels of last year.
The bank’s drive to improve the efficiency supported by strict cost management measures helped in bringing down the cost-to-income ratio from 17.4% in 2022 to 17.1% for 2023, which is the lowest in the Qatari banking sector.
QIB was able to manage the ratio of non-performing financing assets to total financing assets around 1.7%, as of December 31, 2023 one of the lowest in the industry, reflecting the quality of the bank’s financing assets portfolio and its effective risk management framework.
QIB continued to create precautionary impairment charge on financing assets for QR1.1bn in 2023 and maintaining a healthy coverage ratio for non-performing financing assets at 87.5% as of December 31, 2023.
Total shareholders’ equity reached QR25.4bn, an increase of 9.2% on a yearly basis. As of December 2023, the total capital adequacy, under Basel III guidelines is 20.4%, which is well above the regulatory minimum prescribed by the QCB and the Basel Committee.
"2023 was defined by our unwavering commitment to our customers, placing their needs at the forefront of our operations. Looking back at the 2023 fiscal year, despite the challenges posed by the operating and macroeconomic environment, QIB has delivered remarkable results,” said Sheikh Jassim bin Hamad bin Jassim bin Jaber al-Thani, QIB chairman.
Stressing that the results were a testament to its financial strength and dedication to sustainable growth; he said this achievement was realised while it continued to invest in strengthening the core businesses and expanding revenue streams with innovative products and services.
Highlighting that its strategic investments in technology have borne fruit, with an ongoing increase in digital adoption; Sheikh Jassim said notably, 99% of all transactions are now self-serve. Digital sales have contributed "significantly" to our total sales volume in 2023.
He highlighted the introduction of more than 50 new digital features across all QIB channels, many of which are pioneering innovations in Qatar.
“QIB’s focus on sustainability is evident in the introduction of numerous sustainability-linked products and services," he added.
