QIB Q3 results post QR1,001m net profit

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."

"The initiative of the government and Qatar Central Bank to purchase shares and real estate portfolios has enhanced confidence in the banking sector. We appreciate these efforts because of the impact on strengthening the financial positions of Qatari banks and the provision of support and development the initiative provided to the banking sector," he added.

QIB CEO, Mr. Salah Jaidah, commented on these financial results saying, "Income from financing operations have climbed from QR903m in the Third Quarter of 2008 to QR1,306m, equaling a 44.6% growth. Total assets have grown at a rate of 18.6%, increasing to QR35.7bn from QR30.1bn in the Third Quarter of last year. Depositors' profit shares have reached QR352m, as compared to QR269m from 2008's Third Quarter."

QIB's Financing and Investment portfolios revealed record growth with the Financing portfolio climbing 25.1% from 2008's Third Quarter to QR22.4bn. At the end of 2009's Third Quarter, Investment portfolios reported QR4.5bn compared to QR6.1bn for the same period in 2008, accompanied with a return on average assets of 4.1%.

Customers' current and savings accounts reflected customer confidence in QIB, growing 23.2%, increasing to QR20.2bn from QR16.4bn in the Third Quarter 2008. Total shareholder equity amounted to QR7.8bn with 13% growth for the 2009 Third Quarter with a return on average equity reaching 21.4%.

Mr. Jaidah commented on QIB's strides, noting, "The Bank's transactions related to the domestic sector witnessed a remarkable positive growth during the past period of 2009 despite the repercussions of the global financial crisis. The Bank also achieved successful financing operations conducted among construction companies, car dealers, cable manufacturers, cement industry and public trade financing. One of the most impressive accomplishments made during the Third Quarter is the QR4bn syndicated Islamic finance facility for one of Qatar's leading real estate and investment companies, Qatari Diar. QIB's QR2bn for financing for the BARWA Financial District and $200m QAPCO deal to fund an LDPE-3 facility are outstanding successes we are also very proud of."

Mr. Jaidah stressed that the Bank's focus for the remainder 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 overall 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.

Regarding the Bank's strategic plan, Mr. Jaidah said, "QIB is committed to strategic local infrastructure projects and will continue to support large industries through innovative and sophisticated Islamic finance solutions. The Bank will become increasingly active in the funding of small and medium-sized enterprises, the public trade sector and will continue to develop and launch new banking products for individual clients and companies. Our network of branches will reach 35 by 2012, and QIB will persist in cultivating strategic partnerships with affiliates, as well as enhancing its planned expansion in local and international investments."

"QIB is confident that the banking industry will respond positively to recent government support," he continued. "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."