Qatar First Bank (QFB) posted a net loss of QR482mn in 2018, the bank said yesterday.
The Shariah-compliant bank’s total income (excluding disposal loss and loss on fair value remeasurement of equity investments) showed a “growth momentum” last year with an increase of 24.1% at QR222mn, compared to QR178mn in 2017.
This was mainly driven by the fee income from the structured products and a reduction of 26% in returns to unrestricted investment account holders (the cost of funding) due to the better management of its loan to deposit ratio.
QFB is regulated by QFCRA and listed on the Qatar Stock Exchange (QSE).
QFB’s management continued to raise its efficiency through the implementation of its cost rationalisation plan that resulted in reduction of total expenses of the bank by 10%, as compared to the previous year. This was mainly driven by reduction in staff cost by 18% and other operating expenses by 16%.
Treasury and investment arm has initiated an ambitious plan to continue increasing the assets under management through multiple deal-by-deal transactions and direct sourcing, structuring and placement of these deals.
The asset and liability management desk continues its offering of innovative products and solutions to the Qatari Corporate client base while adhering to prudent liquidity management measures that enables the bank to maintain its cost of funding and generate positive net profit margins.
The bank also reported a disposal loss and loss on fair value remeasurement of equity investments of QR331mn during the year, compared to QR119mn in the previous year.
This was mainly driven by global and regional headwinds resulting in prevailing market uncertainties that affected the performance of the bank’s alternative investments portfolio.
Despite the challenges faced by QFB previously, the bank said it “looks forward to the future today with positive considered forecasts”.
In 2018, the bank underwent a “comprehensive exercise” to identify weaknesses and strengths. The exercise revealed internal strategic capabilities that, in private banking and real estate investment that could over a competitive edge that would enhance future returns in search of lucrative business opportunities that would have a positive impact on the bank’s future growth.
The QFB building in Doha.
