Qatar First Bank (QFB) has reported a net profit of QR3.2mn on revenues of QR57.5mn in the first three months of this year.
“We are glad to see the turnaround performance of the bank by generating a net profit in the first quarter. Positive results are a direct manifest that QFB is back on the right track with a new strategy that executive management has developed and implemented," QFB chairman Sheikh Faisal bin Thani al-Thani said.
The lender had reported a net loss of QR47.1mn in the corresponding quarter of 2018.
Total revenue grew 71% year-on-year, mainly driven by an increase in fee based income on structured products and investments to QR14.4mn (against QR6.5mn) and increase in net financing income to QR11.9mn (QR3.2mn).
The increase in fee-based income is due to the bank’s newly implemented business strategy of moving away from asset-based income generation to fee income. The increase in net financing income was mainly on reduction in the funding costs due to better management of the bank’s loan-to-deposit ratio and more competitive profit rates offered on deposits.
The stakeholders are witnessing the results of revised strategy where the bank is undergoing a transformational shift from a proprietary-based investment model to having a diversified base of fee-based revenue streams, according to its spokesman.
With the new strategy, QFB has already begun generating fee income by offering client focused investment products, primarily in the real estate and aviation.