- QIB reported a 5.6% increase in net profit, reaching QAR 2,065 million for the first half of 2024.
- Earnings per share rose to QAR 0.87, reflecting improved profitability, with a QAR 0.25 interim cash dividend authorized per share.
- Total assets grew to QAR 192.3 billion, driven by increases in financing assets and investment securities.
- The bank’s asset quality remained strong, with non-performing financing assets at a low ratio of 1.7% and a healthy coverage ratio of 95%.
Qatar Islamic Bank (QIB), renowned as Qatar’s leading Islamic Bank, has recently disclosed its financial results for the six-month period ending on 30th June 2024, demonstrating robust growth and strategic advancements across various metrics.
Financial Performance
QIB achieved a net profit attributable to shareholders amounting to QAR 2,065 million for the first half of 2024, marking a notable increase of 5.6% compared to the same period in 2023. This growth underscores the bank’s effective operational strategies and market resilience.
Earnings and Dividend
Basic earnings per share for the six-month period ending 30th June 2024 stood at QAR 0.87, up from QAR 0.83 in the corresponding period last year. The QIB Board of Directors has authorized an interim cash dividend of QAR 0.25 per share, equivalent to 25% of the nominal share value, payable to eligible shareholders as of 25th July 2024.
Asset Growth
As of 30th June 2024, QIB’s total assets reached QAR 192.3 billion, reflecting a 1.7% increase from QAR 189.2 billion at the end of December 2023 and a 4.9% increase from June 2023. This growth was primarily driven by expansions in financing and investing activities.
- Financing assets grew to QAR 126.9 billion, up by 3.7% from December 2023 and 6.1% from June 2023.
- Investment securities reached QAR 49.3 billion, showing a 2.7% increase from December 2023 and 3.1% from June 2023.
- Customer deposits stood at QAR 122.7 billion, registering a 1.6% increase from December 2023 and 5% from June 2023.
Financial Strength and Liquidity
QIB maintains a Finance to Deposit Ratio of 103% as of 30th June 2024, highlighting its robust liquidity position compared to peers in Qatar’s banking sector.
Revenue and Operating Efficiency
Total income for the first half of 2024 amounted to QAR 5,662 million, a significant 12.4% increase from QAR 5,038 million in the same period of 2023. Net income from financing and investing activities grew by 13.5% to reach QAR 5,179 million for the six months ended 30th June 2024.
Total operating expenses for the period were QAR 571 million, with the bank achieving an efficient cost-to-income ratio of 17.7%, maintaining the same level as the previous year, which remains the lowest among Qatari banks.
Asset Quality and Risk Management
QIB has successfully managed its non-performing financing assets, maintaining a low ratio of 1.7%, reflecting the high quality of its financing asset portfolio and effective risk management practices.
The bank allocated QAR 565 million as a precautionary impairment charge on financing assets for the first half of 2024, ensuring a healthy coverage ratio of 95% for non-performing financing assets as of 30th June 2024.
Capital and Ratings
Total Shareholders’ Equity as of 30th June 2024 amounted to QAR 25.7 billion, showing a growth of 1.3% from QAR 25.4 billion at the end of December 2023 and 9.2% from June 2023.
QIB’s total capital adequacy as per the new guidelines of Qatar Central Bank and Basel Committee stood at 20.7% as of 30th June 2024, exceeding the minimum regulatory requirements.
Credit Ratings and Recognition
In April 2024, Fitch Ratings upgraded QIB’s credit rating to ‘A’ with a stable outlook, reaffirmed in July 2024. Moody’s Investors Service affirmed the bank’s Long-term deposit ratings at ‘A1’ with a stable outlook in June 2024. Additionally, Capital Intelligence Ratings (CI) affirmed QIB’s Long-term rating to ‘AA-’ with a stable outlook in April 2024.
Accolades and Strategic Vision
Throughout the first half of 2024, QIB received numerous local, regional, and global awards, highlighting its commitment to innovation and excellence in the financial sector. These achievements align with Qatar National Vision 2030 and the strategic objectives outlined in Qatar Central Bank’s Third Financial Sector Strategic Plan.
Overall, Qatar Islamic Bank’s robust financial performance, strategic growth in assets and income, rigorous risk management, and strong credit ratings underscore its position as a leader in Qatar’s banking sector.
With a focus on maintaining financial strength, enhancing customer value, and contributing to national development goals, QIB continues to set benchmarks for Islamic banking excellence in Qatar and beyond.
