Qatar Islamic Bank (QIB) has reported a 16% year-on-year jump in net profit to QR3.56bn in 2021.
The board has proposed a dividend of QR0.575 per share, i.e. 57.5% of the nominal share value, subject to the approval of the Qatar Central Bank (QCB) and QIB’s general assembly.
The bank's basic earnings-per-share was QR1.42 compared to QR1.21 in 2020.
"QIB managed to maintain and strengthen its leadership in the Qatari banking sector and continued to be the largest Islamic Bank and the largest private bank in Qatar ... The performance of the bank in terms of growth, portfolio and profitability is a result of the focused execution of our business strategy over the past few years," said Sheikh Jassim bin Hamad bin Jassim bin Jaber al-Thani, QIB chairman.
Total assets shot up 11.2% to QR194bn, driven by the growth in the finance and investments. Financing registered a strong annual growth of 7.8% to QR128bn. Investments grew sharply by 33.5% to QR44bn.
Customer deposits registered a robust 11% growth to QR131bn. The bank’s strong asset liability management capabilities enabled it to "significantly" improve the financing-to-deposit ratio to 98% in 2021 against 101% in 2020, reflecting its strong liquidity position.
Total income stood at QR8.1bn, registering an annual growth of 2.2%. Income from financing and investing was QR7.1bn with income from financing having grown by 1%, despite low level of global interest rates and the support provided to the customers impacted by Covid-19 pandemic.
Net fee and commission income grew by 10% year-on-year to QR726mn, reflecting positively on the bank’s core operating and banking services.
Total general and administrative expenses were QR1.1bn and were contained at 1% below the year ended 2020.
The bank’s drive to improve the efficiency supported by strict cost management measures helped it in bringing down the cost-to-income ratio from 20.1% in 2020 to 18.1% for 2021, 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 at 1.4%, similar to the levels in 2020 and one of the lowest in the industry, reflecting the quality of the bank’s financing assets portfolio and its effective risk management framework.
Given the uncertainties related to long-term impact of the pandemic on various business segments and geographies in which the clients operate, the bank created precautionary impairment charge on financing assets for QR1.3bn in 2021, which is 5% higher than the amount set aside the previous year.
QIB continues to pursue the conservative impairment policy maintaining a healthy 95% coverage ratio for non-performing financing assets as of December 2021.
Total shareholders’ equity reached QR20.7bn, an increase of 13.3% on a yearly basis. Total capital adequacy was 18.9%, well above the regulatory minimum requirements prescribed by the QCB and Basel Committee.
“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," Sheikh Jassim said.