QIB net profit grows by 12.7% to over QR4 billion in 2022
Board proposes a dividend distribution of QR0.625 per share to shareholders
QATAR Islamic Bank (QIB) on Monday announced that net profit attributable to shareholders amounted to QR4,005 million (QR4.005 billion) for the fiscal year 2022, marking an increase of 12.7 percent over QR3,555 million for the year 2021.
The bank registered basic earnings per share of QR1.62 compared to QR1.42 as of December 31, 2021.
QIB’s board of directors proposed a dividend distribution to shareholders of QR0.625 per share, which is 62.5 percent of the nominal share value, subject to the approval of Qatar Central Bank and QIB’s general assembly.
The total assets of the bank now stand at QR184 billion, with financing assets at QR119.3 billion and investment securities at QR45.8 billion as of December 31, 2022. Customer deposits were QR122.4 billion as of December 31, 2022, with a financing-to-deposit ratio of 95.1 percent as of December 31, 2022, compared to QCB’s maximum requirement of 100 percent, reflecting the bank’s strong liquidity position.
Total Income for 2022 reached QR9 billion, registering a growth of 10.3 percent compared to QR8.1 billion for 2021. Income from financing and investing activities registered a healthy growth of 11.5 percent to reach QR8 billion compared to QR7.1 billion for 2021.
Income from financing activities has grown by 8.4 percent to reach QR6.5 billion compared to QR6 billion for 2021. Income from investing activities registered a strong growth of 28.2 percent to reach QR1.5 billion compared to QR1.1 billion for 2021.
Net fee and commission income registered a growth of 11.6 percent to reach QR810 million compared to QR726 million for 2021, reflecting positively on the bank’s core operating and banking services activities.
Total general and administrative expenses of the bank were QR1.1 billion for 2022 and were maintained at the same levels as last year. Bank’s drive to improve efficiency supported by strict cost management measures helped in bringing down the cost-to-income ratio from 18.1 percent in 2021 to 17.4 percent for 2022, 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 around 1.5 percent, lower than the 1.8 percent as of December 31, 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.
The bank continued to create precautionary impairment charges on financing assets for QR1.2 billion in 2022, due to the long-term impact of the pandemic and continuing inflationary conditions on business segments and geographies. QIB continues to pursue the conservative impairment policy maintaining a healthy 95.4 percent coverage ratio for non-performing financing assets as of 31 December 2022.
The total shareholders’ equity of the bank reached QR23.3 billion, an increase of 12.2 percent compared to QR20.7 billion as of December 31, 2021. As of December 2022, the total capital adequacy of the bank under Basel III guidelines is 19.9 percent, well above the regulatory minimum requirements prescribed by Qatar Central Bank and Basel Committee.
The QIB board of directors said, “The year 2022 was a historic year for Qatar. The FIFA World Cup Qatar 2022 provided an opportunity to introduce our culture and traditions to the rest of the world. We are extremely proud that we were able to commemorate this historic occasion with our customers, employees, and the larger community, as well as visitors from all over the world.”
“QIB has marked yet another remarkable year despite the economic uncertainty across the globe. In 2022, QIB achieved several milestones, including the introduction of new, innovative products and services for individuals and businesses, as well as growth in its banking operations. QIB was able to maintain and strengthen its leadership in the Qatari banking sector, remaining the largest Islamic bank and the largest private bank in the country,” the board said.
“The bank’s performance in terms of growth, portfolio, and profitability is a result of the focused execution of our business strategy over the last few years. Our ongoing efforts to promote a cashless ecosystem and enable digital access to financial services have proven invaluable in achieving service excellence and allowing us to respond to our customers’ needs in a timely and efficient manner,” the board said. The board of directors also emphasised the bank’s significant progress toward sustainability, both in terms of maintaining a strong financial position and further integrating ESG into the bank’s strategies and operations. Having the Qatar National Vision 2030 as a beacon of our journey and aligning with the United Nations (UN) Sustainable Development Goals (SDGs), QIB is progressing towards a broader and deeper integration of the ESG criteria across all layers of our organisation as per the bank’s long-term sustainability strategy.
“This year’s financial results confirm the bank’s strong foundation and reflect the firmness, resilience, and stability of the Qatari banking sector and the national economy,” the board said.