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QIB Chairman-Sheikh Jassim bin Hamad bin Jassim bin Jabor Al Thani announced the 2009 results and, stated:
"During 2009, Qatar Islamic Bank adopted a well-structured plan for dealing with the downturns brought about by the global financial crisis and their impact on the Gulf region. QIB has successfully achieved the goals of the second year of its strategic five-year plan, in particular regarding the elements relative to consolidating growth, structuring a sound and balanced financial position, enriching our effective Banking Risk management and strengthening business expansion at local and international levels."
"Part of the essential role the Qatar Central Bank is playing, is through the implementation of adequate banking and control policies which ensure sound performance of the country's financial institutions. The initiatives taken by the Government of Qatar through acquiring as Shareholder a stake in the national banks' capitals via the Qatar Investment Authority, played a significant role in consolidating confidence in the Qatari banking sector, and therefore, in the national banks' financial positions," he continued.
"In 2009, QIB furthered its participation in the national economy by funding macro-companies in a new trend intended to further consolidate its leading role in financing national projects and establishing strong domestic partnerships which play a considerable role in realizing the country's development across all fields," he concluded.
Regarding the Bank's additional 2009 financial highlights, Financing Income rose from QR1.328bn in 2008, to QR1.826bn in 2009, a growth of 37.5%. Depositors Profit share increased from QR388m in 2008, to QR510m in 2009, a 31.4% growth. Bank Assets grew 17%, increasing to QR39.3bn with increasing with QR5.7bn in 2008. ROAA attained 3.6% to further consolidate the Bank's Financial Utilization Adequacy.
As for QIB's Financing Portfolio, it had grown to QR22.7 as of December 31st, 2009, a 20% growth compared to the 2008 rate of QR18.8. Domestic Financing represented 94.6% of the Portfolio. The Bank's Investment Portfolio amounted to QR4.6bn at end of 2009, compared to QR6.3bn in 2008. Customers Current & Investment Accounts achieved a 23% growth rate, amounting to QR20.3bn as at the end of 2009, compared to 2008's QR16.6bn for Fall 2008, a result that reflects customers' increasing confidence in the bank's performance.
Concerning the 2009 financial results, QIB CEO, Mr. Salah Jaidah, said, "QIB's local activities witnessed a positive growth in 2009, despite the worldwide economic situation and recession. QIB initiated several financing operations in the contracting, automotive, cables industries, as well as in public trading sectors."
Mr. Jaidah noted QIB excelled throughout the year in organizing large Islamic financing operations for well-known institutions such as the QR4bn deal for Qatari Diar in which QIB was named Initial Mandated Lead Arranger (MLA) and Sole Bookrunner for this Sharia'-compliant finance project. This deal marked the first time a local Qatari bank had been appointed as the Sole MLA and Bookrunner for such a high-profile transaction. This transaction, the largest syndication facility in Qatar in 2009, was also the largest one with a Qatari bank as sole MLA and Bookrunner. QIB also provided a $200m Murabaha financing for QAPCO to finance the company's new Low-Density Polyethylene-3 (LDP3) project.
During the past five years, QIB has expanded its international Islamic network, the world's first and largest, by enhancing its presence in the Middle East, Europe and Asia through QInvest licensed by Qatar Investment Authority, Arab Finance House in Lebanon, European Finance House in the UK and Asian Finance Bank in Malaysia. This expansive network has allowed QIB to play a major role in enhancing Islamic banking operations and delivering products which fulfill increasing demands on Shari'a-compliant services.
Due to QIB's healthy performance, international rating agencies, Capital Intelligence and FITCH, both affirm QIB's rating as (A) stable. QIB has also been recognized as Best Islamic Financial Institution in Qatar by Global Finance Magazine. The Bank operates as the largest Islamic bank in Qatar and one of the largest Sharia'-compliant banks in the world.
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, and the public trade sector will continue to develop and launch new banking products for individual clients and companies. Our network of branches will reach 35 from 26 now by 2012, and QIB will persist in cultivating strategic partnerships with affiliates, as well as enhancing its planned expansion in local and international investments."
Mr. Jaidah noted, "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."
Posted by Rana Mesbah
