QIB profit hits QAR4,005mln in 2022

Qatar Islamic Bank (QIB) has reported its financial results for the fiscal year 2022, ending December 31st. The bank’s net profit attributed to shareholders came in at QAR 4,005 million, representing a 12.7% increase from the previous year. This resulted in basic earnings per share of QAR 1.62, compared to QAR 1.42 in 2021.

The Board of Directors at QIB has proposed a dividend distribution to shareholders of QAR 0.625 per share, pending approval from the Qatar Central Bank and QIB’s General Assembly. The bank’s total assets now stand at QAR 184 billion, with financing assets at QAR 119.3 billion and investment securities at QAR 45.8 billion as of December 31st, 2022. Customer deposits were recorded at QAR 122.4 billion, with a financing to deposit ratio of 95.1% as of December 31st, 2022, which is below the maximum requirement set by the Qatar Central Bank.

In terms of income, QIB recorded a total income of QAR 9 billion for the year ending December 31st, 2022, representing a growth of 10.3% from the previous year. Income from financing and investing activities registered a healthy growth of 11.5% to reach QAR 8 billion, compared to QAR 7.1 billion in 2021. Income from investing activities saw a strong growth of 28.2% to reach QAR 1.5 billion, compared to QAR 1.1 billion in 2021. Additionally, the bank’s net fee and commission income recorded a growth of 11.6% to reach QAR 810 million, reflecting positively on the bank’s core operating and banking services activities.

The bank’s general and administrative expenses were maintained at QAR 1.1 billion for the year ending December 31st, 2022, with the bank’s drive to improve efficiency and strict cost management measures helping to bring down the cost-to-income ratio from 18.1% in 2021 to 17.4% in 2022, which is the lowest in the Qatari banking sector.

QIB also reported a ratio of non-performing financing assets to total financing assets of 1.5%, lower than the 1.8% recorded in 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 charge on financing assets for QAR 1.2 billion in the year ending December 31st, 2022, due to the long-term impact of the pandemic and continuing inflationary conditions on business segments and geographies.

In terms of shareholders’ equity, the bank’s total shareholders’ equity reached QAR 23.3 billion, an increase of 12.2% compared to QAR 20.7 billion as at December 31st, 2021. The bank’s total capital adequacy under Basel III guidelines is 19.9%, well above the regulatory minimum requirements prescribed by the Qatar Central Bank and Basel Committee.

The Board of Directors also highlighted the bank’s progress towards sustainability, both in terms of maintaining a strong financial position and further integrating environmental, social, and governance (ESG) criteria into the bank’s strategies and operations. The bank is working towards aligning with the United Nations Sustainable Development Goals and the Qatar National Vision 2030.