QIB posts QR812.6m net profit for 2009 first half results

The Bank achieved these results despite the global financial downturn through an increase in its operational activities revenues and aggressive expansion of its non-operational revenues sources.

QIB's growth strategy for 2009 has evolved to meet changing demands and priorities brought about by last year's global financial crisis. Redirection of key resources and management of cash flow and profits were primary action points in the enhanced strategy, redirecting main Bank activities to absorb the downturn's negative impact while preserving a balance of assets and cash management to ensure continuous and stable Bank growth.

H.E. Sheikh Jassim bin Hamad bin Jassim bin Jabor al Thani, QIB Chairman noted, '2009 is the second year of QIB's five-year strategic growth plan approved by the Bank's Board of Directors.

During this year's first half, we sought to realize the plan's principal targets, namely, to enhance growth, maintain a strong and balanced financial position, ensure effective banking risk management and consolidate business growth on the local and international levels. It is worth mentioning that the initiative of the government and QCB, to purchase the shares and real estate portfolios, has enhanced the confidence in the banking sector We appreciate these efforts because of the impact on strengthening the financial positions of Qatari banks and provision of support and development to the banking sector".

QIB CEO, Mr. Salah Jaidah, commented on these financial results, saying, "Income from financing operations have climbed from QR555mn in the First Half of 2008 to QR845m, equaling a 52.3% growth. Total assets have grown at a rate of 32.3%, increasing to QR35.6bn from QR26.9bn in the First Half of last year. Depositors' profit shares have reached QR198m, as compared to QR166m from 2008's First Half.

QIB's Financing and Investment portfolios revealed record growth with the Financing portfolio climbing 29.6% from 2008's First Half to QR19.7bn. As for the investment portfolios they recorded at the end of 2009 first half QR4.3bn compared to QR5.5bn for the same period in 2008 accompanied with a return on average assets of 5.2%.

Customers' current and savings accounts reflected customer confidence in QIB, growing 30.3%, increasing to QR20.2bn from QR15.5bn in First Half 2008. Total shareholder equity amounted to QR7.5bn with 14.2% growth for the 2009 First Half with a return on average equity reaching 26%.

Mr. Jaidah commented on QIB's strides, noting,

"The Bank's transactions related to the domestic sector witnessed a remarkable positive growth during the First Half of 2009 despite the repercussions of the global financial crisis, and citing successful financing operations conducted among construction companies, car dealers, cable manufacturers, cement industry and public trade financing, among others, which contributed to the Bank's First Half successes for 2009. This sector will introduce new retail products in the Second Half of this year"

Mr. Jaidah stressed that the Bank's focus for the Second Half of the year will be to continue to drive shareholder value, develop QIB's local human resources and employ cutting-edge technology to meet and anticipate customer service needs. QIB's CEO expects positive results for the Bank's 2009 performance. This success will be driven in part by positive indicators for the national economy which forecast economic growth to reach 7 to 9%; a sure boon to the positive performance of the country's banking sector, of which QIB is a leader in Islamic banking.

QIB remains on-target regarding its strategic five-year plan given the excellent opportunities provided by Qatar's investment environment and the Bank's dedication to stable expansion. The Bank recently opened its 25th branch in Dukhan and will open four additional branches before the end of the year.

In conclusion Mr. Jaidah said, "QIB is confident that the banking industry will respond positively to recent government support and we appreciate the wise guidance of and policy enacted by the Qatar Central Bank which was set forth to protect Qatari banks and was proven sound during the global crisis. We also are very grateful to our shareholders and customers, as they are form an integral part of QIB's successes."