Qatar Islamic Bank (QIB) has announced the financial results of the fiscal year 2022, ending 31st of December. Net profit attributable to shareholders amounted to QAR 4,005 Million for the fiscal year 2022 compared to QAR 3,555 Million for the year 2021, thus marking an increase of 12.7% over last year with basic earnings per share of QAR 1.62 compared to QAR 1.42 as at 31 December 2021.
QIB Board of Directors proposed a dividend distribution to shareholders of QAR 0.625 per share i.e. 62.5% 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 QAR 184 Billion, with Financing assets at QAR 119.3 Billion and Investment Securities at QAR 45.8 Billion as at 31 December 2022. Customer Deposits was QAR 122.4 Billion as at 31 December 2022 with Financing to Deposit ratio of 95.1% as at 31 December 2022 compared to QCB maximum requirement of 100%, reflecting the Bank’s strong liquidity position.
Total Income for the year ended 31 December 2022 reached QAR 9 Billion registering a growth of 10.3% compared to QAR 8.1 Billion for the year ended 31 December 2021. Income from financing and investing activities registered a healthy growth of 11.5% to reach QAR 8 Billion compared to QAR 7.1 Billion for the year ended 31 December 2021. Income from financing activities has grown by 8.4% to reach QAR 6.5 Billion compared to QAR 6 Billion for the year ended 31 December 2021. Income from investing activities registered a strong growth 28.2% to reach QAR 1.5 Billion compared to QAR 1.1 Billion for the year ended 31 December 2021. Also, Net fee and commission income has registered a growth of 11.6% to reach QAR 810 Million compared to 726 Million for the year ended 31 December 2021, reflecting positively on the Bank’s core operating and banking services activities.
Total general and administrative expenses of the Bank were QAR 1.1 Billion for the year ended 31 December 2022 and were maintained 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 18.1% in 2021 to 17.4% for 2022, 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 1.5%, lower than the 1.8% as at 31 December 2021 and one of the lowest in the industry, reflecting the quality of the Bank’s financing assets portfolio and its effective risk management framework. The Bank continued to create precautionary impairment charge on financing assets for QAR 1.2 Billion in the year ended 31 December 2022, due to the long term impact of the pandemic and continuing inflationary conditions on business segments and geographies. QIB continues to pursue the conservative impairment policy maintaining a healthy 95.4% coverage ratio for non-performing financing assets as of 31 December 2022.
Total Shareholders’ Equity of the Bank reached QAR 23.3 Billion, an increase of 12.2% compared to QAR 20.7 Billion as at 31 December 2021. As of December 2022 the Total Capital adequacy of the Bank under Basel III guidelines is 19.9%, well above the regulatory minimum requirements prescribed by Qatar Central Bank and Basel Committee.
“2022 was a historic year for the State of Qatar,” said the QIB Board of Directors commenting on the end-of-year financial results. “The FIFA World Cup Qatar 2022, the world’s largest sporting event, provided an opportunity to introduce our culture and traditions to the rest of the world. We are extremely proud that we were able to commemorate this historic occasion with our customers, employees, and the larger community, as well as visitors from all over the world.”
“QIB has marked yet another remarkable year despite the economic uncertainty across the globe. In 2022, QIB achieved several milestones, including the introduction of new, innovative products and services for individuals and businesses, as well as growth in its banking operations. QIB was able to maintain and strengthen its leadership in the Qatari banking sector, remaining the largest Islamic bank and the largest private bank in the country.”
“The Bank’s performance in terms of growth, portfolio, and profitability is a result of the focused execution of our business strategy over the last few years,” the Board added. “Our ongoing efforts to promote a cashless ecosystem and enable digital access to financial services have proven invaluable in achieving service excellence and allowing us to respond to our customers’ needs in a timely and efficient manner.”
The Board of Directors also emphasized the bank’s significant progress toward sustainability, both in terms of maintaining a strong financial position and further integrating ESG into the bank’s strategies and operations. Having the Qatar National Vision 2030 as a beacon of our journey and aligning with the United Nations (UN) Sustainable Development Goals (SDGs), QIB is progressing towards a broader and deeper integration of the ESG criteria across all layers of our organization as per the bank’s long-term sustainability strategy.
“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. Our sustainable and stable business model has been recognized by all international rating agencies, resulting in numerous recognitions and awards from the most credible international financial publications”.
QIB Board of directors concluded the meeting by expressing their profound gratitude to QIB’s shareholders and customers for their trust in the Bank, and their appreciation to all Bank employees for their dedication and ongoing efforts to achieve positive results and continuous improvements.
In November 2022 Moody’s Investors Service, (“Moody’s”) affirmed the Long-term deposit ratings at “A1”. In September 2022, Fitch Ratings affirmed the Bank’s credit rating at ‘A-’. In March 2022, Capital Intelligence Ratings (CI) has affirmed the Bank’s Long-term Currency Rating (LTCR) of ‘A+’.
QIB’s business growth, dedication to innovation and customer excellence has earned the bank over 40 prestigious awards and global recognition from acclaimed publications.
QIB received “Best Bank”, “Best Bank for Digital Solutions”, and “Best Bank for Islamic Finance in Qatar” from the Euromoney Magazine as a testimony of its exceptional performance. Furthermore, Euromoney has recognized QIB across four categories in the Euromoney Market Leaders rankings, reaffirming its leading position in the financial sector in the country. QIB was ranked as a leader in “Digital Solutions”, “Corporate Banking” and “Islamic Finance” and was highly regarded in “Corporate Social Responsibility (CSR)”.
QIB was named “Best Performing Bank in Qatar” in the Top 100 Arab Banks Rankings for 2022 by the Banker Magazine reaffirming its position as one of the leading banks in the Arab world. The Banker also recognized QIB’s continuous growth and solid performance with the “Best Islamic Bank of the Year in the Middle East, Qatar, and the UK” awards.
Furthermore, QIB received Straight Through Processing (STP) Excellence Award from Citibank and was honored by Ministry of Labour for its Qatarization efforts. QIB received several awards from the Digital Banker, and three awards from the Asset Triple A Islamic Finance Awards. The Bank also received four prestigious awards from Global Finance and four from MEED MENA Banking Excellence Awards.
At this year’s Forbes Top 100 Listed Companies in the Middle East, QIB was ranked 25th in the Middle East and 3rd in Qatar, while Mr. Bassel Gamal, Group CEO of QIB was amongst the Top 100 CEOs in the Middle East 2022 and received the Asian Banker “CEO Leadership Achievement for Qatar” award for his excellent leadership.
Additionally, QIB received two awards from the Asian Banker magazine, as well as two more titles from the Asset Triple A Magazine for its exceptional digital services. EMEA Finance awarded QIB with two titles Best Islamic Bank in Qatar and Best Product Launch in the Middle East. Islamic Finance News recognized QIB as Best Islamic Bank in Qatar for the third consecutive year.
Source: Qatar Islamic Bank