(MENAFN- The Peninsula)
The Peninsula
Qatar Islamic Bank (QIB), Qatar's leading Islamic Bank, yesterday announced that its net profit attributable to the shareholders of the Bank amounted to QR750m for the three months' period ended March 2021, representing a growth of 9.1 percent over the same period in 2020. Total Assets of the Bank has increased by 8.5 percent compared to March 2020 and 3.4 percent compared to December 2020 and now stands at QR180bn driven by the continued growth in the financing activities. Financing activities have now reached QR125bn having grown by 9.8 percent compared to March 2020 and up by 5.1 percent compared to December 2020. Customer Deposits of the Bank now stand at QR126bn registering a growth of 14.3 percent compared to March 2020 and up by 6.6 percent compared to December 2020. Total Income for the three months' period ended March 31, 2021 was QR2,100m registering 8 percent growth compared to QR1,944m for the same period in 2020. Income from financing and investing activities have registered a growth of 1.8 percent to reach QR1,758m at the end of the three months' period ended 31 March 2021 compared to same period last year.
The Bank was also able to achieve significant reduction in cost of funding (profit paid to Sukuk and Unrestricted Investment Account holders) enabling robust growth in the Net Operating Income. Total Operating Expenses for the three months period ended 31 March 2021 was QR269m compared to QR271m for the same period in 2020. Strong operating income generation and cost containment enabled the Bank to achieve further efficiencies bringing down the cost to income ratio to 17 percent, which is the lowest in the Qatari banking sector. QIB was able to maintain the ratio of non-performing financing assets to total financing assets at 1.5 percent reflecting the quality of the Bank's financing assets portfolio. Given the ongoing uncertainties related to the impact of the pandemic, the Bank created an additional precautionary impairment charge on financing assets for QR558m for the three months' period ended 31 March 2021 as against QR219m set aside during the same period last year. QIB continues to pursue the conservative impairment policy maintaining a healthy 92.3 percent coverage ratio for non-performing financing assets as of March 2021. The Bank continues to take necessary actions and precautions for safety and wellbeing of its employees, customers and to the community at large.
Total Shareholders' Equity of the Bank has reached QR18.1bn. Total Capital adequacy of the Bank under Basel III guidelines is 19 percent as of March 2021, higher than the minimum regulatory requirements prescribed by Qatar Central Bank and Basel Committee. In March 2021, Standard & Poor's (S & P) affirmed the Bank's credit rating at ‘A-' while upgrading the Bank's StandAlone Credit Profile. In November 2020, Fitch Ratings affirmed the Bank's credit rating at ‘A' and Moody's Investors Service, ('Moody's) also affirmed the Long-term deposit ratings at 'A1. In April 2021, Capital Intelligence Ratings (CI) has affirmed the Bank's Longterm Currency Rating (LTCR) of ‘A+'. In the first quarter of 2021, QIB has received a number of prestigious awards from well-respected international publications. Bassel Gamal, QIB Group's CEO has also entered Forbes' prestigious Top CEOs in the Middle East ranking. QIB has been awarded four prestigious accolades at the Global Finance Magazine's World's Best Islamic Banks Awards for 2021, including ‘Best Islamic Corporate Bank Global' in addition to ‘Best Islamic Bank in the Middle East' and ‘Best Islamic Bank in Qatar' for the second consecutive year, and ‘Best Islamic Bank in Sudan'. QIB was also recognized with two prestigious titles at The Digital Banker Magazine's the Middle East & Africa Innovation Awards 2021, as ‘Best Mobile Initiative in Qatar' and ‘Best Bank for Cash Management in Qatar.' The Bank received ‘Digital Bank of the Year in Qatar' and ‘Best Retail Mobile Banking Experience in Qatar' at The Asset Triple A Digital Awards 2021.
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