Qatar Islamic Bank (QIB) has reported net profit of QR3.07bn in 2020 against QR3.06bn the previous year, despite the impact of Covid-19 and the decline in oil prices.
The bank, which maintained the basic earnings per share at QR1.21, has recommended 40% cash dividend.
"2020 was a year of unprecedented challenges for almost every individual and organisation across the globe, disrupting the way we live and conduct our business. Despite strong headwinds, QIB has maintained strong and steady financial performance, ensured business continuity and continues to support all our customers to efficiently manage their banking and funding requirements," said its chairman Sheikh Jassim bin Hamad bin Jassim bin Jaber al-Thani.
Total assets grew 6.6% to QR174.4bn, driven by core banking, as financing registered a robust 4.7% jump to QR 119.1bn.
Customer deposits were up 5.8% to QR118.1bn. The bank’s strong liquidity position in the current challenging environment is reflected in a healthy financing-to-deposit ratio of 101% and execution of new sukuk issuances for $1.65bn in 2020.
Total income rose 2.8% to QR8bn, despite sharp drop in global interest rates and the support to the customers impacted by the Covid-19. Income from financing and investing was up 3.4% to QR7.2bn in 2020, reflecting a healthy growth in core operations.
Strict cost controls supporting higher operating revenues further improved QIB’s efficiency, bringing down cost-to-income ratio to 20.1% in 2020, which is the lowest in the Qatari banking sector.
QIB was able to manage the ratio of non-performing financing assets to total financing assets at 1.4%, one of the lowest in the industry, reflecting the quality of its financing assets portfolio and effective risk management.
Given the uncertainties related to long-term impact of the pandemic on various business segments and geographies in which the clients operate; QIB’s precautionary impairment charge on financing assets more than doubled to QR1.26bn in 2020.
QIB continues to pursue the conservative impairment policy maintaining a healthy 92% coverage ratio for non-performing financing assets in 2020.
Total shareholders’ equity grew 6.8% to QR18.3bn. The capital adequacy was 19.4%, well above the regulatory minimum requirements prescribed by the Qatar Central Bank and the Basel Committee.
Sheikh Jassim said the bank’s future development plans are in line with the Qatar National Vision 2030.
Highlighting that QIB is committed to supporting the diversification of Qatar’s local economy and the development of its strong private sector; he said "we remain focused on continuously enhancing our technology platforms to pre-empt and satisfy the changing client needs in the digital era, improve our level of services and continue helping our customers and partners succeed."