QIB earns first half net profit of QR630mn

Qatar Islamic Bank (QIB) earned a first half net profit of QR630mn, down from QR737mn posted in the corresponding period last year.

Net profit for the second quarter of this year was QR339mn, representing a growth of 16.4% over Q1, 2013 but 2.9% below second quarter of last year.  

Total assets of the bank stand at QR74bn, registering an increase of 17.2% compared to second quarter 2012. Financing activities have strongly rebounded in the second quarter to reach QR41.4bn, having grown 9% compared to March 2013 and 15.6% compared to June 2012.

QIB’s customer deposits moved up to QR46.3bn, registering a “strong” growth of 14.1% compared to March 2013 and 38.3% compared to June 2012 allowing the bank to “effectively fund” its asset growth.

Total Income for the first half has reached QR1.49bn derived by strong growth in investment income, which was offset by lower financing income and fees due to margin compression.

Strong cost control established across the bank has ensured only 1% increase in the first half operating costs comprising of staff expenses, deprecation and other expenses.

Total shareholders’ equity of the bank reached QR11.2bn by the end of the second quarter 2013, helping it to maintain its “healthy” capital adequacy ratios.

During the second quarter of 2013 Fitch affirmed the bank’s long term Issuer Default Rating (IDR) of ‘A’ with a stable outlook.

Similarly, Standard & Poor’s Rating Services have also maintained QIB’s Counterparty Credit Rating at “A-“with a stable outlook, which reflects the strong position in Qatar’s rapidly expanding Islamic banking market, favourable operating environment and strong capitalisation.

QIB’s dominant role in Islamic banking has been recognised through number of accolades that it received as the “Best Islamic Bank in Qatar” from The Banker, Islamic Finance News, Euromoney, The Asset Magazine, World Finance and Global Finance.