QIB profit grows by 15% to reach QR725m

Qatar Islamic Bank (QIB), Qatar’s leading Islamic Bank, has announced the results for 6 months ending 30 June 2014. Net Profit attributable to the Shareholders of the Bank reached QAR 725 Million for the period ended June 2014 representing a growth of 15% compared to June 2013.
Total Assets of the Bank now stand at QAR 89.1 Billion having increased 20% compared to June 2013 and 15% compared to December 2013. Financing activities has significantly increased to reach QAR 54.5 Billion having grown by 32% compared to June 2013 and 16% compared to December 2013, QIB said in a statement.
Customer Deposits of the bank have moved up to QAR 61.3 Billion registering a strong growth of 33% compared to June 2013 and 22% compared to December 2013 allowing the Bank to significantly improve its liquidity positions.
Total Shareholders’ Equity of the bank reached QAR 11.6 Billion, an increase of 4% compared to June 2013 Total Income of the Bank for the period ended June 2014 amounted to QAR 1.8 Billion representing an increase of 18% compared to June 2013. Income from financing activities was the primary growth driver at QAR 1.2 Billion for the period June 2014, representing an increase of 23% compared to June 2013.
Net commission and fees income has also registered a strong growth to reach QAR 191 Million for the period ended June 2014, representing an increase of 42% compared to June 2013.
QIB was able to manage the ratio of non-performing financing assets to gross financing assets at 0.9%, as compared to 1.5% in June 2013, which is one of the lowest in the industry, reflecting the quality of the Bank’s financing assets portfolio and its effective risk management framework. The Bank continued to pursue the conservative impairment policy with the coverage ratio for non-performing financing assets reaching 97.2% as of June 2014 as compared to 85.5% in June 2013.
International credit rating agency Standard & Poor’s, in its latest report issued in June 2014 have reaffirmed QIB’s Counterparty Credit Rating at "A-"with a stable outlook. Similarly, Capital Intelligence (CI) in its latest report issued in April 2014, has reaffirmed QIB’s Financial Strength Rating (FSR) of ‘A’, with an upgraded ‘Stable’ Outlook in view of the significant improvement in financing asset quality and stabilized Return on Average Assets. In 2014, Fitch had affirmed the Bank's long term Issuer Default Rating (IDR) of 'A' with a stable outlook.