(MENAFN- The Peninsula) QIB has recorded a net profit of QR2.15bn for the fiscal year 2016, up 10.3 percent compared to QR1.95bn for the year 2015. The bank's basic earnings per share reached QR8.55 compared to QR 8.06 a year ago.
In line with the improved profitability, QIB Board of Directors proposed a profit distribution to shareholders of 47.5 percent of the nominal share value (QR 4.75 per share), subject to approval of Qatar Central Bank and General Assembly.
Commenting on the bank's solid performance, Sheikh Jassim bin Hamad bin Jassim bin Jaber Al Thani (pictured), Chairman of QIB said: 'These record financial results reflect the successful implementation of the Bank's strategy and the commitment to continuously deliver value to all our stakeholders despite the enduring challenging global and regional economic conditions".
"While growing the business, our key priority remains to continue strengthening the key risk performance metrics through a proactive and conservative financial and risk management approach, he said.
Total Assets of the Bank has increased by 10 percent compared to 2015 and now stands at QR 139.8bn driven by a robust growth in the Financing activities that have now reached QR98.2bn having added QR10.7bn, representing a 12 percent growth over 2015.
Customer Deposits of the bank have registered a positive growth of 4 percent compared to 2015 and now stand at QR 95.4bn. Total Income for the year ended 31 December 2016 was QR5.48bn registering 22 percent growth compared to QR4.50bn for 2015.
Income from financing and investing activities has grown by 22 percent to reach QR4.75bn compared to QR3.89bn, reflecting a healthy growth in the Bank's core operating activities.
QIB was able to maintain the ratio of non-performing financing assets to total financing assets at 1 percent, one of the lowest in the industry, reflecting the quality of the Bank's financing assets portfolio and its effective risk management framework.
QIB continues to pursue the conservative impairment policy with the coverage ratio for non-performing financing assets reaching 87 percent as of December 2016.
Total shareholders' equity of the bank reached QR14.2bn, an year-on-year increase of 6.4 percent. Following the issuance of another tranche of QR2bn perpetual Sukuk, the total Basel III compliant Additional Tier 1 Capital of the Bank now stands at QR4bn.
Total Capital adequacy of the Bank under Basel III guidelines is 16.7 percent, higher than the regulatory minimum requirements prescribed by Qatar Central Bank and Basel Committee.
'Our strategy is closely tied with Qatar's National Vision 2030 and the Government's commitment to investments in the country's infrastructure, the diversification of the economy and the development of a strong private sector," he said.
"QIB is a stable financial group with deep experience, covering all segments of the financial markets, including individuals, government institutions, large corporations and SMEs providing innovative Sharia-compliant banking solutions, added Sheikh Jassim. In April 2016, Fitch Ratings has affirmed QIB's Long Term Issuer Default Rating (IDR) at 'A+' with a Stable Outlook reflecting the Bank's established franchise in Qatar, its sound asset quality, solid funding and liquidity profile with a franchise that is more diversified than that of many peers and taking into account the Bank's adequate profitability, and satisfactory capital and leverage ratios.
Standard & Poor's Rating Services has also retained QIB's Counterparty Credit Rating at 'A-' and Capital Intelligence has reaffirmed QIB's financial strength rating of ‘A' with stable outlook.
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