Qatar First Bank (QFB) reported a net loss of QR20.2mn attributable to equity holders of the bank in three months up to September, compared with a net profit of QR1.5mn in the same period of 2019.
The Shariah-compliant bank based in Qatar is regulated by the QFCRA and listed on Qatar Stock Exchange (QSE).
However, the composition of total income was restructured as a result of the shift in the bank’s strategy to focus on structured investment products.
As a result of this strategic shift, income generated from structured investment products, which includes fee income, dividend income and gain on disposal of equity assets, increased by 169% reaching QR13.4mn compared to QR4.9mn in the same period of 2019.
On the expense side, strict cost controls introduced by the bank has resulted in a total reduction in expenses by 28% while enhancing the efficiency levels.
The Covid-19 pandemic had a limited impact on the bank’s performance in the third quarter, which impacted provisions by QR15.8mn.
Overall, QFB witnessed a stable improvement in financial performance where major performance indicators showed healthy growth trends compared to previous financial years despite the macroeconomic challenges.
In a statement QFB’s board of directors said, “As we are in the recovery phase of Covid-19, QFB’s level of resilience and agility has aided the bank in pursuing its long-term plans. QFB’s recent addition to its portfolio "Varsity Brands" received an overwhelming response from investors and it was subscribed in record-time while our investment team focused on increasing the bank’s assets through direct sourcing of funds from existing and new clients and offering structured investment products to our investors using multiple deals that generated higher risk-adjusted returns. As part of QFB’s strategy to focus more on structured investment products, during Q3 2020 we witnessed a strong contribution from this revenue stream.”
Highlights of the quarter included the appointment of Abdulrahman Totonji as the bank’s acting CEO.
Varsity Brands, is a three story, 135,0000 square foot building in Texas, US.
As a measure to stabilise the bank’s future income streams and reduce the cost of funding, QFB acquired an additional sukuk investments, which brings stable income.
QFB’s share price continued to “perform well” during the quarter showing “healthy growth” compared to the last quarter and compared to the same quarter in 2019, the bank said.
The estimated year-on-year growth in QFB’s share was approximately 94%, which is a “testimony to QFB’s success in delivering value to its shareholders and investors.”
However, the composition of total income was restructured as a result of the shift in the bank’s strategy to focus on structured investment products.
As a result of this strategic shift, income generated from structured investment products, which includes fee income, dividend income and gain on disposal of equity assets, increased by 169% reaching QR13.4mn compared to QR4.9mn in the same period of 2019.
On the expense side, strict cost controls introduced by the bank has resulted in a total reduction in expenses by 28% while enhancing the efficiency levels.
The Covid-19 pandemic had a limited impact on the bank’s performance in the third quarter, which impacted provisions by QR15.8mn.
Overall, QFB witnessed a stable improvement in financial performance where major performance indicators showed healthy growth trends compared to previous financial years despite the macroeconomic challenges.
In a statement QFB’s board of directors said, “As we are in the recovery phase of Covid-19, QFB’s level of resilience and agility has aided the bank in pursuing its long-term plans. QFB’s recent addition to its portfolio "Varsity Brands" received an overwhelming response from investors and it was subscribed in record-time while our investment team focused on increasing the bank’s assets through direct sourcing of funds from existing and new clients and offering structured investment products to our investors using multiple deals that generated higher risk-adjusted returns. As part of QFB’s strategy to focus more on structured investment products, during Q3 2020 we witnessed a strong contribution from this revenue stream.”
Highlights of the quarter included the appointment of Abdulrahman Totonji as the bank’s acting CEO.
Varsity Brands, is a three story, 135,0000 square foot building in Texas, US.
As a measure to stabilise the bank’s future income streams and reduce the cost of funding, QFB acquired an additional sukuk investments, which brings stable income.
QFB’s share price continued to “perform well” during the quarter showing “healthy growth” compared to the last quarter and compared to the same quarter in 2019, the bank said.
The estimated year-on-year growth in QFB’s share was approximately 94%, which is a “testimony to QFB’s success in delivering value to its shareholders and investors.”