Qatar Islamic Bank (QIB), Qatar’s leading Islamic Bank, has announced a net profit (attributable to the shareholders of the Bank) of QAR1.6 billion for the year 2014, which represents a strong 20% increase over 2013.

Earnings per Share reached QAR6.78, compared to QAR5.65 in December 2013.

In line with the improved profitability, QIB Board of Directors proposed a profit distribution to shareholders of 42.5% of the nominal share value (QAR4.25 per share) compared to 40% last year, subject to approval of Qatar Central Bank and QIB’s General Assembly.

Total Assets of the Bank has increased by 24% compared to 2013 and now stands at QAR96 billion driven by a robust growth in the Financing activities that have now reached QAR60 billion having added QAR13 billion, representing a 27% growth over 2013.

Customer Deposits of the Bank have registered a strong growth of 32% compared to 2013 and now stand at QAR67 billion, allowing the Bank to improve its financing to deposit ratio to 90%.
Total Income for the year ended 31 December 2014 was QAR3,633 million registering 16% growth compared to QAR3,144 million for 2013.

Income from financing and investing activities has grown by 10%  to reach QAR3,093 million at the end of 2014 compared to QAR2,804 million for 2013, reflecting a healthy growth in the Bank’s core operating activities.

QIB was able to maintain the ratio of non-performing financing assets to total financing assets at 1%, one of the lowest in the industry, reflecting the quality of the Bank’s financing assets portfolio and its effective risk management framework.

QIB continues to pursue the conservative impairment policy with the coverage ratio for non-performing financing assets reaching 101% as of December 2014 up from 94% as of December 2013.

Total Shareholders’ Equity of the bank reached QAR12.5 billion, an increase of 5% as compared to December 2013. Total Capital adequacy of the Bank under Basel III guidelines is 14%, against the minimum limit of 12.5% prescribed by Qatar Central Bank.

To further strengthen the Bank’s capital base and support the future business growth, Board of Directors have proposed to issue Basel III compliant Additional Tier 1 Sukuk up to a maximum amount of QAR2 billion, subject to approval of Qatar Central Bank and General Assembly.