(MENAFN- The Peninsula) Qatar Islamic Bank's (QIB) net profit attributable to the shareholders touched an impressive QR1.6bn for the full-year 2014, up 20 percent from a year ago.
Earnings per share reached QR6.78, compared to QR5.65 in December 2013. In line with the improved profitability, QIB Board of Directors proposed a profit distribution to shareholders of 42.5 percent of the nominal share value (QR4.25 per share) compared to 40 percent last year, subject to approval of Qatar Central Bank and QIB's General Assembly.
Total Assets of the bank has increased by 24 percent compared to 2013 and now stands at QR96bn, driven by a robust growth in the financing activities that have now reached QR60bn having added QR13bn, representing a 27 percent growth over 2013.
Customer deposits have registered a strong growth of 32 percent compared to 2013 and now stand at QR67bn, allowing the bank to improve its financing to deposit ratio to 90 percent.
Total income for the year ended December 31, 2014 was QR3.63bn, registering a 16 percent growth compared to QR3.14bn for 2013. Income from financing and investing activities has grown by 10 percent to reach QR3.09bn at the end of 2014 compared to QR2.8bn 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 percent, 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 percent as of December 2014, up from 94 percent as of December 2013.
Total shareholders' equity of the bank reached QR12.5 billion, an increase of 5 percent as compared to December 2013. Total capital adequacy of the bank under Basel III guidelines is 14 percent, against the minimum limit of 12.5 percent prescribed by Qatar Central Bank. To further strengthen the capital base and support the future business growth, the Board has proposed to issue Basel III compliant Additional Tier 1 Sukuk up to a maximum amount of QR2bn, subject to approval of QCB and General Assembly.
Sheikh Jassim bin Hamad bin Jassim bin Jaber Al Thani (pictured), Chairman of Qatar Islamic Bank, said: "these positive financial results reflect successful implementation of the bank's strategy to grow its financing and investment activities during 2014. The bank has also managed to strengthen the key performance and risk metrics through proactive financial and risk management."
He added, "QIB remains committed to support the local economy through its innovative Shari'ah-compliant solutions offered to its large number of corporate customers who are handling major national projects across different sectors. The bank continues to recruit and invest in local talent and fulfil its responsibility as a corporate citizen through its support to a number of social initiatives."
Sheikh Jassim expressed his deep gratitude to QIB's shareholders and clients for their trust in the bank, and his appreciation to the board of directors and employees for their contribution and continuous efforts towards achieving positive results.
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