Qatar Islamic Bank nets QR1.13bn gain in 9 months

Indicating “strong” operating performance, Qatar Islamic Bank (QIB) posted a net profit of QR1.13bn in the nine months to September, up 2% on the same period last year. The total assets of Qatar’s largest Islamic bank stood at QR66.8bn in September, up 26.7% on the same period last year. The bank’s asset growth continues to be driven by financing activities that have reached QR38.1bn in September, up 42% (QR11.3bn) on the same period last year. Customer deposits totalled QR39.9bn in September, a 50% growth since the same period last year, QIB’s third quarter results show. The net operating income of QR2.45bn earned by the bank in the third quarter of the year is 20% higher than QR2.04bn registered in Q3, 2011 and reflects strong growth in the bank’s core operating activities. “The strong operating performance has enabled the bank to strengthen its financial position by allocating QR298mn towards improving the provision coverage on financial investments and financing activities,” QIB said. Impairment losses during the same period last year was QR73mn. QIB’s total equity reached QR11.3bn in September, an increase of 4% compared to same period in 2011, helping the bank maintain its healthy capital adequacy ratios. The bank’s “healthy capitalisation and strong asset base” has enabled Fitch Ratings to affirm QIB Long-term Issuer Default Rating (IDR) at ‘A’ with a stable outlook. Standard & Poor’s has also assigned QIB counterparty credit ratings of ‘A-’ long-term and ‘A-2’ short-term, with a stable outlook on the long-term. QIB established $1.5bn sukuk programme and priced the first tranche of $750mn 5-year sukuk issued at par with a 2.5% semi-annual profit rate, representing the lowest profit rate ever achieved by any GCC financial institution. The “highly successful” issue received an “overwhelming interest” from regional as well as international investors with the final book reaching 6bn representing eight times the subscription of the issue size. QIB chairman Sheikh Jassim bin Hamad bin Jassim bin Jaber al-Thani said, “The bank continues to show significant growth, stable and well diversified revenue streams and positive results. “The announcement of the financial results coincides with the bank’s success in launching the first tranche of its new sukuk programme. This will enable us to further contribute in Qatar’s economic growth, both at home and internationally.”