QIB’s dedication to leveraging technology, optimising costs, and prioritising customer needs have allowed it to emerge as the “most efficient bank in the world” with a cost to income ratio of 17.1%, noted QIB chairman Sheikh Jassim bin Hamad bin Jassim bin Jaber al-Thani.
Presenting QIB Board of Directors’ report to the general assembly meeting on Wednesday, he said the bank generated a return on assets (ROA) of 2.3%, the highest in the Qatari market and a return on equity (ROE) of 17.3%, well above the local market average.
“As always, our year was defined by our focus on doing the right thing by our customers and putting them first. Looking back at the 2023 fiscal year, in a challenging operating and macro environment QIB delivered a record net profit of QR4.3bn,” he said.
Sheikh Jassim said the implementation of an effective risk management framework, including the integration of ESG principles in the credit policies and procedures, has enabled QIB to maintain its high asset quality and the lowest non-performing financing assets ratio of 1.7% in the Qatari banking sector.
Last November, QIB issued a $500mn five-year Sukuk. The transaction was met with strong demand, with an oversubscription rate of 6.6 times.
Through continuous investments to accelerate digital banking across the bank, it has grown digital adoption to 79% of its customers by 2023, and 99% of all transactions are now self-serve transactions replacing branch transactions digital sales through the mobile app for key products, such as personal finance and credit cards, contributed more than 50% of QIB’s total sales volume in 2023.
QIB introduced more than 50 new, innovative digital features last year across all its channels for individual and corporate customers. Many of the bank’s innovative digital products and services are introduced for the first time in Qatar.
Key innovations introduced in 2023 include ‘QIB Lite’ app, a first-of-its-kind simplified version of the QIB Mobile app available in multiple languages to support financial inclusion, as well as the ‘Carbon Emission Tracker’ to create sustainability and environmental awareness among our customers.
QIB also digitalised all its credit, debit and pre-paid cards, eliminating the need to have a physical card for shopping at online and physical stores. It has launched a new ‘Retail Marketplace’ – a platform which provides hassle-free, comprehensive shopping experience with competitively priced products to customers.
“Our commitment to strong corporate governance continues to be a core focus for the Board of Directors. This year, we welcomed four new members to our Board, two of whom are independent members,” Sheikh Jassim said.
Looking back at the 2023 fiscal year, QIB had achieved positive progress, cementing its position as one of the largest Islamic banks internationally. Total assets of the bank now stand at QR189.2bn, customer deposits at QR120.8bn and total income reached QR11.1bn, representing a strong growth of 24% compared to 2022. QIB continues to pursue the conservative impairment policy maintaining a healthy 87.5% coverage ratio for non-performing financing assets by the end of 2023.
“On behalf of the Board of Directors, I would like to extend our sincerest gratitude and appreciation to His Highness the Amir, Sheikh Tamim bin Hamad al-Thani, and to His Highness the Father Amir, Sheikh Hamad bin Khalifa al-Thani for their continuous support and encouragement to the banking sector in the State of Qatar.
“I would also like to thank all officials concerned with the banking sector in Qatar, particularly the Qatar Central Bank, for their continued support on all components of the banking and economic activity.”
Meanwhile, the general assembly approved the board of directors’ proposal to distribute 72.5% cash dividends of the nominal value per share, which translates into QR0.725 per share.
Related Story