QIB records QR456m net profit Q1 08

This reflects the already successful execution of a five-year business plan supervised and endorsed by H. E. Sheikh Jassim bin Hamad bin Jassim Al Thani to achieve the objectives for the year 2008 - which include sustaining growth, consolidating profitability and building a strong and balanced financial centre.

"2008 represents the first year of implementation for QIB's five-year strategic plan, and we have already achieved significant progress," said Mr Salah Jaidah, QIB Chief Executive Officer.

"Our focus for over the next five years is on effective management to respond to possible financial risks; support business growth locally, regionally and internationally; build a transparent business infrastructure as well as develop Islamic financial services and offer them to the financial market to meet clients' expectations and comply with the best recognised international standards."

The share of unrestricted investment accounts holders' in the profits have gone up to QR82m marking a growth of 65.5%. QIB has recorded QR30bn in assets in the first quarter marking an increase of QR15.3bn, up 104% from the same quarter last year, and up QR8.6bn from the last quarter of 2007.

The bank's financing portfolio has increased to QR14.5bn in the first quarter of 2008 compared to QR8.4bn during the same period in 2007 indicating a rise of 73%, while the bank's investment portfolio has increased to QR5.3bn in the first quarter of 2008 compared to QR3.3bn for the same period last year, indicating a rise of 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 to QR9bn for the same period in 2007 indicating a growth rate of 62%. Meanwhile, shareholders' equity has risen to QR6.2bn by the end of first quarter of 2008 and the return on average equity has reached 37.9%. While earning per share has reached QR2.48 compared to QR1.47 in the first quarter of 2007 reflecting an increase of 68.7%.

"QIB has entered into unique joint ventures such as the Abu Funtas Desalination Plant with Qatar Electricity and Water Company, and as a major partner and deputy investor in an Islamic finance project for the first time with the United Development Company (UDC) to execute the Cartier Canal Project at a value of $600m," said Jaidah.

This is in addition to financing several real estate projects such as Al Samriya Towers and Al Ramess Tower at QR350m and QR178m respectively.

"QIB has started the year 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 finance institutions' network and undertaking feasibility studies with the objective of enhancing its foreign investments," added Jaidah.

The bank shares 20% of 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.

The bank's results for the first quarter support its strategy and capability to increase capital where the subscription in capital increase was four times more than the requested amount, raising the capital to QR1.969bn, added Jaidah.

"The investment environment in Qatar opens the door for expansion opportunities. We are moving forward successfully in expanding our branch-network and investment services to reach our clients around the country through 23 branches and more than 90 ATM machines," said Jaidah.

Jaidah highlighted the role that the Sharia'a Verdict and Monitoring Authority plays in the operations of the bank: "Our local and international business expansions have taken into consideration the guidelines of the Sharia'a Board and Al Fatwa Authority that audit all the bank's activities and affiliated financial subsidiaries in Qatar and abroad. The authority represents an ideal body for Sharia'a-driven auditing that has made it a model for other Islamic financial institutions around the world."