* With the successful exit from one of its private equity investments, QFB achieved a net internal rate of return of 19%
Qatar First Bank (QFB) has announced its “successful exit” of its $31.5mn investment in CMRC Limited, one of its private equity investments in the Middle East.
With the successful exit the bank achieved a net IRR (internal rate of return) of 19%.
In 2015, QFB acquired an adjusted stake of 13.5% in CMRC Limited, the leading medical rehabilitation center in the Gulf region.
The company’s turnover has increased from $15mn in 2015, to more than $54mn in 2020.
QFB is the first independent Shariah compliant bank authorised by the QFC Regulatory Authority (QFCRA) and a listed entity on Qatar Stock Exchange.
The successful exit of QFB’s investment in CMRC comes in line with the bank’s strategic decision to further strengthen its liquidity provision, balance sheet and to focus on exploring further investment opportunities.
The bank’s recent transaction also comes in line with its plans to explore new markets and industries, and to expand its investments to new locations and regions around the world.
On the successful exit, HE Sheikh Faisal bin Thani al-Thani, chairman, QFB, said, “We are happy to announce our successful exit from one of our legacy private equity investments in the region. The good business performance that the project enjoyed over the past years, and with the return on investment we have made from selling our shares in CMRC Limited, makes this investment a standout achievement for the bank.”
Sheikh Faisal added: “Being able to achieve such profitable outcomes with a good return on investment in this project within the general atmosphere marked by business uncertainty in light of the Covid-19 pandemic, is testament to our experience and knowledge in investment.”
QFB’s acting CEO Abdulrahman Totonji said, “As we conclude our presence in this investment, QFB remains committed to strengthening its investment portfolio in Qatar, regionally and globally. We will move forward with our ambitious investments strategy, by accessing new and promising markets, while gradually reducing its dependence on limited markets and industries.”
Totonji added: “As the business world is witnessing a gradual recovery, we will continue focusing on investments that promise sustainable profitability, growth and risk adjusted returns while keeping a disciplined approach in managing our liquidity and to ensure we are well placed in navigating any market uncertainties.”
QFB recently announced its financial results for the 2020 fiscal year. The bank posted a net profit of QR1.2mn in the fourth quarter of the year and has reduced its overall annual net loss by 24% compared to 2019.
The bank has also recorded an improved performance despite the circumstances related to the pandemic, achieving a 6.9% reduction in overall expenses in 2020.
