QIB posts 9-month profit of QR975mn

Slippage in earnings and faster growth in expenses as well as net impairment losses on financing led Qatar Islamic Bank (QIB) report a 14% decline year-on-year (y-o-y) in January-September net profit to QR975.14mn.

Total income from financing and investments fell about 1% to QR2.08bn and that from net fee and commission by 35% to QR206.08mn, according to its financial statement filed with the Qatar Exchange.

A spokesman said net profit attributable to shareholders of the bank was QR345.10mn, which represented a 2% growth over the second quarter (Q2) of this year.

Its net foreign exchange gains had fallen 11% y-o-y to QR24.01mn and other income by 90% to QR1.07mn in the nine-month period ended September 30, 2013.

Although it earned QR3.19mn as share of results of associates against loss of QR5.63mn in the year-ago period; QIB’s total income was down 6% to QR2.31bn in the first nine months of this year.

Total income for the third quarter (Q3) alone grew 7% over that in Q2 of this year, the spokesman said.

In contrast, total expenses shot up 10% to QR756.69mn as staff costs were up about 1% (QR363.98mn), sukuk holders’ share of profit by 65% (QR130.14mn) and other expenses by 9% (QR217.07mn).

Net impairment losses on financing assets more than doubled to QR116.64mn; while those on investment in securities and properties fell 38% to QR158.24mn.

Total assets stood at QR73bn, representing a 9% growth y-o-y. A strong rebound in Q3, 2013, helped the bank report 14% expansion in financing to QR43.37bn in January-September this year.

Customers’ deposits amounted to QR45.6bn, allowing the bank to effectively fund its asset growth.

QIB was able to manage the non-performing loans (NPLs) at 1.1% of the gross financing assets, which reflected the lender’s asset quality and its effective risk management.

“The bank continued to pursue the conservative impairment policy with the coverage ratio for NPLs reaching 111% as of September 2013,” the spokesman said.

Total shareholders’ equity stood at QR11.53bn at the end of third quarter, helping it to maintain a healthy capital adequacy ratio, the spokesman said.