Qatar- QIB posts QR1.37bn profit as investment earnings jump

(MENAFN – Gulf Times) Qatar Islamic Bank (QIB) has reported an 8% rise in net profit to QR1.37bn in 2011 as investment earnings almost tripled.
The bank has proposed a 45% cash dividend to shareholders, which is subject to the approval of Qatar Central Bank and to be discussed in the next general assembly meeting, said a bank spokesman after the board meeting yesterday.
The increase in net profit was the result of the growth in investment income which amounted to QR631mn at the end of 2011 compared to QR214mn for the corresponding period, he said.
The core business of the bank has grown strongly, leading to an 18% increase in net operating income which reached QR2.68bn.
“The strong results recorded for the year 2011 confirm that QIB has successfully implemented its business plan for the fourth year of its five-year strategy (2008-12),” QIB chairman Sheikh Jassim bin Hamad bin Jassim bin Jaber al-Thani said.
The announcement of the financial results comes on the back of a strategic transformation programme that the bank is implementing. The strategy is to restructure both its local operations and its affiliates to build a strong banking group with regional and international presence offering Islamic financial solutions, he added.
Net financing and investing income grew by 22% to QR2.4bn, while fee income was up 4% to QR300mn.
Unrestricted investment account holders’ share of profit fell 8% to QR410mn. Sukuk holders’ share of profit also was QR105.8mn at the end of 2011 compared to QR24.5mn in 2010.
“This is a testament to QIB’s balanced funding strategy,” the bank spokesman said.
Financing portfolio stood at QR29.6bn at the end of December 2011 compared to QR29.3bn the previous year.
Domestic financing represents a total of 98% of the overall portfolio, which indicates a high level of insulation from adverse global economic changes, as well as the range and diversity of the financing products offered to our customers, according to the spokesman.
Investment portfolio more than doubled to QR16.9bn, resulting from the risk-free investment in government sukuk, the bank said.
Total assets of the bank stood at QR58.3bn, registering a growth of 12.4%. Return on average assets stood at 2.5%, reflecting an efficient asset management strategy.
The bank’s total equity reached QR11.2bn by end of 2011, an increase of 24% against same period of 2010.
Return on average equity stood at 16%, and at the end of 2011. Earnings per share stood at QR5.87, which was on par with the same period of the previous year.
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