QIB Profit grows by 14% in first quarter of 2022

QIB Profit grows by 14% in first quarter of 2022

Qatar Islamic Bank (QIB), Qatar’s leading Islamic Bank, has announced the results for the three months’ period ended 31 March 2022. Net Profit attributable to the Shareholders of the Bank amounted to QAR 855 Million for the three months’ period ended 31 March 2022 representing a growth of 14% over the same period in 2021. 

Total Assets of the Bank has increased by 6.8% compared to March 2021 and now stand at QAR 193 Billion driven by the continued growth in the financing and investing activities.

Financing assets reached QAR 127 Billion having grown by 1.6% compared to March 2021 while Customer Deposits now stand at QAR 123 Billion.

Total Income for the three months’ period ended 31 March 2022 was QAR 2,117 Million with Income from financing and investing activities registering a growth of 5.6% to reach QAR 1,857 Million for the first quarter of 2022 compared to QAR 1,758 Million for the same period in 2021. The Bank was also able to achieve reduction in cost of funding (profit paid to Sukuk and Unrestricted Investment Account holders) enabling growth in the Net Operating Income. 

Total Operating Expenses for the three months’ period ended 31 March 2022 was QAR 270 Million, maintained around the same levels for first quarter of 2021. Strong operating income generation and cost containment enabled the Bank to further improve it efficiencies bringing down the cost to income ratio to 16.8% for the three months’ period ended 31 March 2022 compared to 17% for the same period in 2021, 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 1.5%, similar to levels as at 31 March 2021 and 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 by building precautionary impairment charge on financing assets for QAR 519 Million for the period ended 31 March 2022 and improving the coverage ratio for non-performing financing assets to 95% as of 31 March 2022 compared to 92.3% at the end of March 2021.

Total Shareholders’ Equity of the Bank has reached QAR 20.3 Billion. Total Capital adequacy of the Bank under Basel III guidelines is 18.8% as of March 2022, higher than the minimum regulatory requirements prescribed by Qatar Central Bank and Basel Committee.   

In March 2022 Capital Intelligence Ratings (CI) has also affirmed the Bank’s Long-term Currency Rating (LTCR) of ‘A+’. In November 2021, Fitch Ratings affirmed the Bank’s credit rating at ‘A’ and Moody’s Investors Service, (“Moody’s”) affirmed the Long-term deposit ratings at “A1”. In January 2022, Standard & Poor’s (S&P) affirmed the Bank’s credit rating at ‘A-’. 

Maintaining its longstanding position as the leading Islamic Bank as well as Digital Bank in Qatar, QIB was awarded with twelve prestigious awards across several internationally recognized publications. These awards come in recognition of QIB’s continuous efforts in developing innovative digital banking solutions and services, further cementing its leadership in the banking sector in the region. It is also a testament to the bank’s strong financial performance and successful business strategies. 

QIB received two distinguished awards from The Asset's Triple A Digital Awards 2022 namely “Digital Bank of the Year” and “Best Mobile Banking App”. 

The Bank was awarded four prestigious accolades at the Global Finance. In recognition of its outstanding position as the leading Islamic Bank in Qatar and its continuous efforts in meeting all customers, SMEs, and Corporates, QIB was named: “Best Islamic Financial Institution in Qatar”, “Best Islamic Corporate Bank,” “Best Islamic Bank for CSR, by Global Finance,” and “Best SME Bank in Qatar.”

The Bank has also been awarded with two prestigious titles at The Digital Banker Magazine’s Middle East & Africa Innovation Awards 2022 — the “Outstanding Account Opening and Onboarding Initiative” and “Best Bank for Cash Management”, by the Digital Banker. In addition, EMEA Finance, the leading finance magazine in Europe, Middle East, and Africa, awarded QIB with the “Best product launch in the Middle East” title and the “Best Islamic Bank in Qatar” title for the fifth consecutive year.