QIIB achieved a net profit of QR1.16bn in 2023, up 8.3% on 2022, bank chairman Sheikh Abdullah bin Thani bin Abdullah al-Thani announced on Tuesday.
Earnings per share reached QR0.7 in 2023, the bank said.
QIIB’s board of directors recommended to the General Assembly of shareholders the distribution of a cash dividend of QR0.45 per share (equivalent to 45% of the share’s par value).
This recommendation follows the consent of the Qatar Central Bank (QCB) approval of the bank's 2023 financial statements.
Sheikh Abdullah noted “QIIB has achieved outstanding results during the past year, further strengthening its financial indicators. The bank's strategy succeeded in maintaining a focus on the Qatari market, while leveraging the abundant opportunities offered by the Qatari economy, which continues to demonstrate superior performance, thanks to the support and guidance of His Highness the Amir Sheikh Tamim bin Hamad al-Thani.
“The bank has been able to address various challenges and respond to market developments, continuing the implementation of its strategic plans. This has notably reflected on its performance, strengthening its position and achieving good growth rates”, he said.
“QIIB made significant strides in its operational performance. This improvement is attributed to various factors, mainly the remarkable success of the digital transformation plan.
“In 2023, QIIB accomplished a lot in this realm, forming partnerships with international companies to achieve more milestones in line with global developments and the significant technological advancements witnessed in the banking sector.”
Sheikh Abdullah said, “2023 witnessed many close collaborations with various local business entities. The bank continued to finance enterprises of various types, in line with our strategy focused on the local market.
“Special attention was given to the small and medium-sized enterprises (SMEs), recognising their role as a cornerstone in supporting and adding value to the broader segment of society.
“The outstanding performance achieved by QIIB in 2023 has been reflected in the reports and ratings issued by international credit rating agencies, which have awarded QIIB superior ratings. Fitch rated the bank at A- with a positive outlook and Moody's at A2 with a stable outlook, while Capital Intelligence assigned it an A+ rating with a stable outlook.
QIIB chief executive officer Dr Abdulbasit Ahmad al-Shaibei, noted, “At year end, net operating income reached QR1.97bn, a growth rate of 10.1%, which confirms the effectiveness of management of the bank’s funding and investing activities, while total assets increased to QR61.6bn, with a growth rate of 9.3%. Net financing assets also grew by the end of the year to QR36.5bn, with a growth rate of 4.2%. Concurrently, customer deposits rose to QR38.9bn.
He stated: “Operational efficiency (cost-to-income ratio) continued to achieve exceptional levels throughout 2023, reaching 17.9%, which is among the lowest in both local and international banking sectors. This indicates excellent revenue and expense management, in conjunction with the increase in the banks’ key financial performance indicators.”
“At the end of 2023, total equity amounted to QR9.5bn, while Basel III capital adequacy stood at 17%. The bank also maintained the quality of its assets by maintaining the rate of non-performing financing to 2.9% and the coverage ratio to 87%, indicating QIIB’s robust financial position and excellent management of various risks.
"QIIB’s 2023 results demonstrated the bank's ability to develop its tools, improve its indicators, and make progress in implementing the plans and strategies approved in response to various conditions and challenges faced by the bank throughout the past year, whether related to markets or other various factors.”
“QIIB worked diligently to enhance its operational efficiency, using various methods and means that have been proven successful. Foremost among them is the bank’s substantial investment in modern technology and active engagement in the implementation of the digital transformation plans, where every opportunity in this realm has been capitalised upon to boost performance and provide customers with an exceptional banking experience that aligns with QIIB’s long-standing expertise”, he emphasised.
Al-Shaibei noted, “Our broad interest in digital transformation processes and enhancing sustainability efforts, among other pillars, stems from our desire to align with the objectives of the Third Financial Sector Strategy approved by the QCB in Q4, 2023.
“Given the exceptional importance of digital transformation processes in the banking sector, QIIB signed a memorandum of understanding (MoU) with Mastercard to establish a mutual strategic relationship.
“Additionally, the bank has signed an MoU with FynPay, a fintech company, with the aim of exploring a partnership to expand the digital channels at QIIB.”
In connection with the expansion of digital banking services, QIIB’s CEO clarified: “The bank places great emphasis on protecting its transactions and customers from various risks. In recognition of these efforts, QIIB has obtained the ISO 27001:2022 certificate in cybersecurity. The bank stands among the pioneers in Qatar to achieve this certification according to the new standards.
“Throughout the past year, QIIB launched numerous products, offerings, and promotional campaigns that captured the interest and attention of the bank's customers. These initiatives came in response to customer needs and aspirations, introducing services for the first time in Qatar, such as the ‘Swift Go’ remittance service, which provides seamless transfers for the bank's SME and individual customers.”