Qatar Islamic Bank (QIB) posted a net profit of QR3.05bn last year, up nearly 11% on 2018. In 2018, QIB had registered a net profit of QR2.75bn.

Basic earnings per share stood at QR1.21 in 2019 compared to QR1.08 in December 2018, QIB chairman Sheikh Jassim bin Hamad bin Jassim bin Jaber al-Thani said on Wednesday.

QIB's board of directors proposed a dividend distribution to shareholders of QR0.525 per share, i.e, 52.5% of the nominal share value, subject to approval of the Qatar Central Bank and QIB’s general assembly.

The bank’s total assets stood at QR163.5bn and increased by 6.7% compared to 2018 driven by a growth in the core banking activities. Financing activities registered a robust 11.3% growth over 2018 to reach QR113.8bn.

Investment securities reached QR33.3bn registering a 5.7% growth over 2018. Customer deposits of the bank now stand at QR111.6bn registering a strong 11% growth compared to December 2018.

Total income for the year ended December 31, 2019 amounted to QR7.73bn, registering 12.4% growth compared to QR6.88bn for 2018. Income from financing and investing activities grew by 15.5% to reach QR6.92bn at the end of 2019 compared to QR6bn for 2018, reflecting a healthy growth in the bank’s core operating activities.

Total general and administrative expenses of QR1.10bn for the year that ended on December 31, 2019 were 3.8% below QR1.14bn for the year that ended on December 31, 2018.

Strict cost controls supporting higher operating revenues enabled further enhancement of efficiency, bringing down the cost-to-income ratio to 22.8% for 2019, which is the lowest in the Qatari banking sector.

QIB was able to manage the ratio of non-performing financing assets to total financing assets at 1.3%, 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% coverage ratio for non-performing financing assets as of December 2019.

Total shareholders’ equity of the bank reached QR17.1bn, an increase of 11.1% compared to December 2018. As of December 2019, the total capital adequacy of the bank under Basel III guidelines was 19.5%, higher than the regulatory minimum requirements prescribed by the QCB and Basel Committee.

“I am pleased to announce that QIB has marked yet another remarkable year. In 2019, QIB witnessed several milestones in terms of introduction of new innovative products and services as part of the bank’s digital transformation programme and we achieved growth across all banking activities through 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 the national economy.

“As we enter into the new fiscal year, we have affirmed our position as the leading Islamic bank while maintaining the position as the second largest bank in the country. Today, QIB has the means, resources, and qualifications to continue delivering premium banking services to all QIB customers. We are dedicated to delivering value to all our stakeholders and offering our customers modern, convenient, and timely banking solutions,” Sheikh Jassim said.

“The bank’s future development plans are in line with the Qatar National Vision 2030. QIB is committed to supporting the diversification of Qatar’s local economy and the development of its strong private sector. For 2020, we remain focused on continuously improving our products, digital platforms, and level of service and helping our customers and partners succeed,” he said.

Sheikh Jassim expressed his gratitude to QIB’s shareholders and customers for their trust in the bank, and his appreciation to the board of directors and all bank employees for their contribution and continuous efforts towards achieving positive results and continuous improvements.

In November 2019, Fitch Ratings had affirmed QIB at 'A' with a stable outlook. In December 2019, Moody's Investors Service, affirmed the long-term deposit ratings of QIB at “A1” with a stable outlook. In May 2019, Capital Intelligence Ratings (CI) has affirmed the bank’s long-term currency rating (LTCR) of ‘A+’ with a stable outlook. In March 2019, Standard & Poor’s (S&P) affirmed the bank’s credit rating at ‘A-’ with a stable outlook.

QIB’s outstanding performance and its investments in innovation, technology, and customer experience led the bank to be recognised as one of the leading banks in the region.

In 2019, QIB received more than 20 awards from reputable international institutions, including "Qatar's Best Bank" from Euromoney, "Best Islamic Bank in the Middle East" by the Banker, Financial Times Group, and "Best Islamic Financial Institution in Qatar" by Global Finance.

In recognition of the bank’s digital transformation results, QIB was named "Best Digital Bank in Qatar" by the Asian Banker and "Qatar’s Most Innovative Digital Bank" and "Qatar’s Best Consumer Digital Bank" by Global Finance.

Recognising the bank’s long-term and sustainable performance, The Asian Banker Magazine honoured QIB Group CEO Bassel Gamal with the Leadership Achievement Award and The Best Managed Bank in Qatar Award; both being granted only once every three years.