Achieving “remarkable” growth across various items provided in its budget, leading Islamic bank QIIB posted a net profit of QR832mn in 2017, up 6% on 2016.
The bank’s total assets increased to QR46.6bn by end-2017, which represents a growth of 9.6% compared to 2016.
The results were announced after a meeting of the QIIB board of directors presided over by QIIB vice-chairman Sheikh Abdullah bin Thani bin Abdullah al-Thani here yesterday.
The board of directors recommended to the Ordinary General Assembly of shareholders to distribute cash dividends of 40% (QR4 per share) subject to Qatar Central Bank (QCB) approval of the financial statements.
Sheikh Abdullah Bin Thani said, “The bank’s results and its remarkable growth are consistent with the strength of the Qatari economy and its ability to face various challenges it has confronted with. The Qatari economy has proven to be rock solid and firm, driven by diligent planning and systems and procedures, thanks to the patronage and support of His Highness the Emir, Sheikh Tamim bin Hamad al-Thani”.
He said, “At QIIB, we remain committed to the Qatari economy and are putting all our strengths and resources to the provision of necessary financing for projects, whether they are infrastructure related or otherwise.”
Sheikh Abdullah expressed confidence that QIIB would continue in the growth trajectory and maintain profitability in the period ahead as its strategy has demonstrated its ability to anticipate potential challenges, ensured strength and stability in the bank’s financial position and minimised risks.
QIIB chief executive officer Dr Abdulbasit Ahmad al-Shaibei said total revenues of the bank amounted to QR1.9bn in 2017 compared to QR1.7bn in 2016, which represents a growth of 8.8%, as customer deposits increased to reach QR32.5bn in 2017 compared to QR26.6bn in 2016.
Shareholders equity stood at QR6.8bn in 2017, while capital adequacy under Basel III ratio was 17.87%, which indicated the strength of QIIB’s financial position amid various risks.
Al-Shaibei confirmed that the financial results achieved by QIIB in 2017 are in perfect alignment with efforts made to implement the plans set by the bank’s board of directors and adapt quickly to the various market factors and challenges in 2017, especially those linked to the unjustified blockade on Qatar.
He said the strength of the Qatari economy and its ability to overcome various challenges and obstacles, shielded the country’s banking system from any adverse effects as a result of the blockade.
The government’s policies have turned the blockade into an opportunity and the actions taken by the QCB have contributed to the sector’s financial stability and helped it overcome any effects or consequences of the blockade.
“We have found that the growth in various items provisioned in our budget confirms these facts.”
“During 2017, QIIB maintained its focus and interest on the local market in view of the opportunities provided by the Qatari economy, which is witnessing a major revival in terms of projects, whether they are large and related to infrastructure, or small and medium projects, which the government considers very important in the economy and a contributor to national growth.”
Al-Shaibei said, “It is important to mention the effective co-operation and partnership between QIIB and the Qatar Development Bank, which facilitated financing many small and medium projects and entrepreneurial initiatives.”
In 2017, QIIB executed many plans and procedures aimed at increasing operational efficiency. The nation-wide branch network was restructured in line with new urban developments and the expansion of commercial centres and newer malls in many areas, Dr al-Shaibei added.
Al-Shaibei: Qatar’s policies have turned the blockade into an opportunity.