Qatar Islamic Bank posts QR812.6m net profit for 2009 first half results

Mr. Jaidah attributed the Bank's financial increases to QIB's growth strategy for 2009, which 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.

2009 marks the second year of QIB's five-year strategic growth plan approved by the Bank's Board of Directors. The plan aims to realize numerous 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 shares and real estate portfolios has enhanced confidence in the banking sector. We appreciate these efforts because of the impact they have had upon strengthening the financial positions of Qatari banks and providing support and development to the banking sector," he added.

Mr. Jaidah, noted the recent financial results, saying:

"Income from financing operations have climbed from QR555m 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. Investment portfolios recorded at the end of 2009 first half QR4.3bn compared to QR5.5bn for the same period in 2008. These results were 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 explained 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 cited 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."

He noted 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 seven to nine percent; 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.

To conclude, 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 form an integral part of QIB's successes."