(MENAFN- The Peninsula) The Peninsula
DOHA: Qatar Islamic Bank's (QIB) net profit attributable to shareholders reached QR2.75bn for the fiscal year 2018 compared to QR2.40bn for the year 2017, an increase by 14.5 percent over last year with basic earnings per share of QR10.79 compared to QR9.31 posted a year ago.
QIB Board of Directors proposed a dividend distribution to shareholders of QR5 per share i.e. 50 percent of the nominal share value, subject to approval of Qatar Central Bank and QIB's General Assembly.
Total assets of the bank has increased by 2 percent compared to 2017 and now stands at QR153.2bn, driven by a growth in the core banking activities. Financing activities now stand at QR102.2bn. Investment securities have now reached QR31.1bn having added QR743m, representing a 2.4 percent growth over 2017. Customer Deposits of the Bank now stand at QR100.6bn.
Announcing the results Sheikh Jassim bin Hamad bin Jassim bin Jaber Al Thani, QIB Chairman said: ' QIB has marked yet another remarkable year. In 2018 QIB witnessed several milestones in terms of introduction of new innovative products and services and achieved growth in its banking activities. This success is the result of the successful implementation of our business strategy.
'This year's financial results confirm the Bank's strong position and reflect the firmness, resilience and stability of the Qatari banking sector and national economy. We are dedicated in delivering value to all our stakeholders and offering our customers modern, convenient and timely banking solutions in full compliance with Shari'a principles, he said.
The bank's total Income for the year ended 31 December 2018 was QR6.89bn registering 11.3 percent growth compared to QR6.19bn for 2017. Income from financing and investing activities has grown by 10.2 percent to reach QR6bn, reflecting a healthy growth in the Bank's core operating activities.
Total expenses of QR1.16bn for the year ended 31 December 2018 are 5 percent up from a year ago. Strict cost controls supporting higher operating revenues enabled further enhancement of efficiency, bringing down the cost to income ratio to 25.7 percent for 2018 as compared to 26.6 percent for the year 2017.
QIB was able to manage the ratio of non-performing financing assets to total financing assets at 1.2 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 maintaining 100 percent coverage ratio for non-performing financing assets as of December 2018.
Total Shareholders' Equity of the bank reached QR15.4bn, an increase of 1 percent as compared to December 2017. As of December 2018 the Total Capital adequacy of the Bank under Basel III guidelines is 18.8 percent, higher than the regulatory minimum requirements prescribed by Qatar Central Bank and Basel Committee.
'As we enter into the new fiscal year, we have affirmed our position as the leading Islamic Bank locally while maintaining the position as the second largest Bank in the country. QIB today has the means, resources and qualification to continue delivering premium banking services to all QIB customers., said Sheikh Jassim.
'The Bank's future development plans are in line with Qatar National Vision 2030. QIB is committed to support the diversification of Qatar's local economy and the development of its strong private sector. He added 'For 2019, we remain dedicated to continuously improving our products, digital platforms and services and helping our customers and partners succeed.
In January 2019 Moody's Investors Service affirmed long-term deposit ratings to QIB at 'A1 with a Stable outlook. In December 2018, Standard & Poor's (S & P) affirmed the Bank's credit rating at ‘A-' with a Stable outlook. In July 2018, Fitch Ratings affirmed QIB at ‘A' with a Stable outlook and Capital Intelligence Ratings (CI) has affirmed the Bank's Financial Strength Rating (FSR) of ‘A'.
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