QIB posts QR456mn gain in Q1; assets up to QR30bn

DOHA: Qatar Islamic Bank has posted a net profit of QR456mn in the first quarter of this year compared with QR270mn in the same period last year, up 69%.

The premier Islamic bank has recorded QR30bn in assets in the first quarter marking an increase of QR15.3bn, up 104% on the same period last year.

The bank’s financing portfolio has increased to QR14.5bn in the first quarter of 2008 compared with QR8.4bn during the same period in 2007 representing a 73% percent increase.

The bank’s investment portfolio has increased to QR5.3bn in the first quarter of 2008 compared with QR3.3bn for the same period last year, up 63%. This performance was achieved in parallel with an 8.3% rise in the return on the average assets.

The bank’s current and investment accounts have risen to QR14.6bn in the first quarter of 2008 compared with QR9bn for the same period in 2007, up 62%.
QIB’s shareholders’ equity has risen to QR6.2bn and the return on average equity to 37.9% in Q1, 2008.

The earning per share has reached QR2.48 in Q1, 2008 compared with QR1.47 in the first quarter of 2007, a rise of 68.7%.
QIB chief executive officer Salah Mohamed al-Jaidah said 2008 represented the first year of the implementation of the bank’s five-year strategic plan.

“The first quarter results reflect the execution of the business plan that was supervised and endorsed by Sheikh Jassim bin Hamad bin Jassim al Thani, QIB chairman, to achieve the objectives for the year 2008, which include sustaining growth, consolidating profitability and building a strong and balanced financial centre.

The focus was also on effective management to respond to possible financial risks, support business growth locally, regionally and internationally, build a transparent business infrastructure, develop Islamic financial services and offer them to the financial market,” he said.

“QIB has entered into unique joint ventures such as the Abu Fontas Desalination Plant with Qatar Electricity and Water Company and as a major partner and investor in an Islamic finance project for the first time with the United Development Company to execute the Cartier Canal Project at a value of $600mn. This is in addition to financing several real estate projects such as Al Samriya Towers and Al Ramess Tower at QR350mn and QR178mn respectively,” al-Jaidah added.

He said QIB started 2008 by obtaining authorisation for the European Finance House (EFH) from the UK Financial Services Authority to operate as an Islamic investment bank in the United Kingdom. QIB is also aiming to expand its financial institutions’ network and undertake feasibility studies with the objective of enhancing foreign investments.

The bank has a 20% stake in the iconic Shard of Glass Tower in London, which is an investment of £2bn in volume and has partnered with QInvest and Silver Leaf Capital to establish Dow Gulf for Investment Opportunities, with a capital of $1bn.

“We will work with the European Fund Foundation as an Islamic investment bank in the UK, and we have undertaken the necessary studies to open new banks to strengthen our investments globally.” Jaidah said.

“Qatar’s environment provides immense opportunities for further expansion. We are moving forward successfully in expanding our branch network and investment services to reach our clients across Qatar through some 23 branches and more than 90 ATM machines,” al-Jaidah added.