QIB profits exceed QR1.25bn in 2007

Qatar Islamic Bank has announced record profits for the financial year 2007 amounting to QR 1.255bn against QR 1.003bn in 2006, marking a year on year growth of 25.2%.

QIB Board of Directors has made a recommendation to the General Assembly to distribute cash dividends of 20%, or QR2 per share, as well as 50% bonus shares.

The Board of Directors has also recommended to the General Assembly a further increase of capital by a privilege rights issue amounting to 20% to be accomplished in two stages, 10% each during 2008 and 2009, with the aim of strengthening the financial position of QIB to meet the requirements of its expansion and execution of its strategic plans.

The financial results of year 2007 demonstrate the stability and strength of QIB's financial position. During this financial year the depositors' share of the profits reached QR 343m, an increase of 33% over the previous year, and QIB's total assets reached QR21.3bn as compared to QR14.9bn in 2006, recording an increase of QR6.4 bn at a growth rate of 43%.

While the financing portfolio of QIB grew 62.5% increasing from QR7.2bn in 2006 to QR11.7bn in 2007, the investment portfolio increased by 43%, moving from QR2.9bn at the end of 2006 to QR 4.2bn in the financial year 2007.

This growth was strengthened by an average return on assets of 7%, enhancing the bank's efficiency of funds deployment to rank among the best in the regional banking industry.

Customers' current and investment accounts rose to QR12.2bn in 2007 compared to QR8.8 bn in 2006, a growth of 39% that clearly reflects the trust customers' place in QIB.

Total share equity increased to QR4.6 bn in 2007 and the return on shareholders equity reached 31.2%, while earning per share rose to QR 10.52 against QR8.95 in 2006, a 17.5% growth.

Mr. Salah Al-Jaidah, the Chief Executive Officer of QIB, commented on the financial results of 2007 saying:

'The exceptional results we have achieved are the fruits of successful implementation of our strategy that focused on developing and enhancing all QIB activities offered to both retail and corporate customers. We successfully expanded the financing operations and participated in major and unique investments both locally and internationally.

Moreover, we have increased our retail network that has now grown to 22 branches and implemented effective risk management standards. The support offered by the QIB staff, which now exceeds 600 employees, has been exceptional. The fact that our key personnel have tremendous experience in the Islamic banking industry makes all the difference'.

He added: 'In 2007, we launched our new corporate identity, which reaffirms our commitment to be a pioneer in Sharia'a compliant financial solutions and our aim is to expand globally while providing continuous transparency and ethical banking solutions to our customers. '

Al Jaidah added: 'In 2007, QIB proved yet again that it is a true leader in the area of Islamic financing operations by extending the first Sharia'a compliant financing to Qatar Airways for the purchase of an aircraft and to the privately owned Al Waab city project. We led the syndicated Sukuk of Al-Salam Bounian, and financed several towers and real estate projects as well as infrastructure projects.'

He also noted the international expansion that QIB has achieved by establishing a network of finance institutions. The bank opened QInvest, licensed by the Qatar Financial Centre (QFC) with a capital of $1bn (Paid up Capital of $500m), the Asian Finance Bank in Malaysia with a capital of $100m as well as an implementation plan to develop the Arab Finance House in Lebanon, in addition to the successful management of multiple real estate portfolios and funds in Europe and America that have generated exceptional returns for investors.

Mr. Al Jaidah acknowledged that the positive results of 2007 reflect the sound vision of the Board of Directors, chaired by HE Sheikh Jassim Bin Hamad Bin Jassim Bin Jabor Al Thani and of the commitment of QIB's management to implementing the bank's operational plans and strategy, as well as the unending support and trust of shareholders and customers.

Al Jaidah praised the important role played by the Sharia'a board of advisors in relation to the bank's financial and investment projects. He confirmed that the Sharia'a board have played a part in the success of the bank by laying down the guidelines for Sharia'a compliance procedures that became an example followed by the Islamic banking industry in Qatar and abroad.

Al Jaidah stated: 'QIB is entering the year 2008 on a strong footing and is looking forward to another year of outstanding performance'.

He announced that the bank has started the year by obtaining a license for the European Finance House (EFH), which has already commenced operations in the United Kingdom and is planning as well the expansion of Al-Jazeera Islamic Company operations after the successful increase of shareholders number.

QIB is also aiming to expand its finance institutions' network and undertaking feasibility studies in Turkey, Egypt and other Gulf countries in addition to Indonesia and Brunei as part of expansion plans of the Asian Finance Bank.

The local expansion in retail services continues. The network of branches already numbers 22 and is set to go up to 35 in the coming year.

QIB is also working to expand the financing operations in large projects and playing a pioneering role in the field of Sukuks (Islamic bonds) issuance.

Al Jaidah acknowledged that QIB, along with the entire banking industry of the country, owed a part of their success to the visionary leadership of HH the Emir, Sheikh Hamad Bin Khalifa Al Thani, and to the support of Qatar Central Bank.