Doha, Qatar: Qatar Islamic Bank (QIB) has announced the financial results of the fiscal year ended 31 December 2023. Net profit attributable to shareholders amounted to QR4,305m for the fiscal year 2023 compared to QR4,005m for the year 2022 marking an increase of 7.5% over last year.
Basic earnings per share for the year 2023 is QR1.73 compared to QR1.62 for the year ended 31 December 2022. QIB Board of Directors proposed a dividend distribution to shareholders of QR0.725 per share i.e. 72.5% of the nominal share value, subject to approval of Qatar Central Bank and QIB’s General Assembly.
Total Assets of the Bank now stands at QR189.2bn representing a growth of 2.8% compared to QR184bn for the year ended 31 December 2022. Financing and investing activities were the primary drivers for the asset growth. Financing activities have now reached QR122.4bn having grown by 2.6% compared to December 2022 and Investment Securities reached QR48bn as at 31 December 2023 are up by 4.9% against December 2022. Customer Deposits stand at QR120.8bn as of 31 December 2023 with Financing to Deposit ratio of 96.5% as of 31 December 2023 compared to QCB maximum requirement of 100%, reflecting the Bank’s strong liquidity position.
Total Income for the year ended 31 December 2023 registered a strong growth of 24% to reach QR11.1bn compared to QR8.9bn for the year ended 31 December 2022. Income from financing and investing activities registered a robust growth of 27.2% to reach QR10.1bn compared to QR7.9bn for the year ended 31 December 2022. Income from financing activities has grown by 32% to reach QR8.6bn compared to QR6.5bn for the year ended 31 December 2022. Net Income from investing activities grew by 5.8% to reach QR1.5bn compared to QR1.4bn for the year ended 31 December 2022.
Net fee and commission income has registered a healthy growth of 9.7% to reach QR889.2m compared to QR810.4m for the year ended 31 December 2022, reflecting positively on the Bank’s core operating and banking services activities.
Total general and administrative expenses of the Bank were QR1.1bn for the year ended 31 December 2023 and were maintained almost at the same levels of last year. Bank’s drive to improve the efficiency supported by strict cost management measures helped in bringing down the cost-to-income ratio from 17.4% in 2022 to 17.1% for 2023, 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 around 1.7%, as at 31 December 2023 one of the lowest in the industry, reflecting the quality of the Bank’s financing assets portfolio and its effective risk management framework. QIB continued to create precautionary impairment charge on financing assets for QR1.1bn in the year ended 31 December 2023 and maintaining a healthy coverage ratio for non-performing financing assets at 87.5% as of 31 December 2023.
Total Shareholders’ Equity of the Bank reached QR25.4bn, an increase of 9.2% compared to QR23.3bn as at 31 December 2022. As of December 2023 the Total Capital adequacy of the Bank under Basel III guidelines is 20.4%, well above the regulatory minimum requirements prescribed by Qatar Central Bank and Basel Committee.
Commenting on 2023 end of year financial results, Sheikh Jassim bin Hamad bin Jassim bin Jaber Al Thani, QIB Chairman said, “2023 was defined by our unwavering commitment to our customers, placing their needs at the forefront of our operations. Looking back at the 2023 fiscal year, despite the challenges posed by the operating and macroeconomic environment, QIB has delivered remarkable results. It is a testament to our financial strength and dedication to sustainable growth. This achievement was realized while we continued to invest in strengthening our core businesses and expanding our revenue streams with innovative products and services.”
“Our relentless focus on technology adoption, cost optimization, and customer-centricity has propelled us to emerge as the world’s most efficient bank. Furthermore, we achieved strong ROA and ROE ratios delivering high returns to our shareholders. These metrics reflect our commitment to delivering exceptional financial results and underscore our confidence in achieving future business objectives.”
He added: “Our balanced and diversified balance sheet remains a cornerstone of our success. We cater to all segments of the Qatari economy while upholding stringent risk management practices, including the integration of ESG principles in our credit policies. This has allowed us to maintain the lowest non-performing financing assets ratio in the Qatari banking sector. Our strategic investments in technology have borne fruit, with an ongoing increase in digital adoption. Notably, 99% of all transactions are now self-serve. Digital sales have contributed significantly to our total sales volume in
2023.”
