(MENAFN - The Peninsula) Qatar Islamic Bank (QIB), the country's largest Shariah-compliant lender by assets, posted a 15 percent year-on-year jump in its net profit. The net profit reached QR725m for the six month period ended June 30, 2014.
Total assets of the bank now stand at QR89.1bn having increased 20 percent compared to June 2013 and 15 percent compared to December 2013. Financing activities has significantly increased to reach QR54.5bn having grown by 32 percent compared to June 2013 and 16 percent compared to December 2013.
Customer deposits of the bank have moved up to QR61.3bn registering a strong growth of 33 percent compared to June 2013 and 22 percent compared to December 2013 allowing the bank to significantly improve its liquidity positions.
Total shareholders' equity of the bank reached QR11.6bn, an increase of 4 percent compared to June 2013.
Total income for the period ended June 2014 amounted to QR1.8bn representing an increase of 18 percent compared to June 2013. Income from financing activities was the primary growth driver at QR1.2bn for the period June 2014, representing an increase of 23 percent compared to June 2013. Net commission and fees income has also registered a strong growth to reach QR191m for the period ended June 2014, representing an increase of 42 percent compared to June 2013.
QIB was able to manage the ratio of non-performing financing assets to gross financing assets at 0.9 percent, as compared to 1.5 percent in June 2013, which is one of the lowest in the industry, reflecting the quality of the bank's financing assets portfolio and its effective risk management framework. The bank continued to pursue the conservative impairment policy with the coverage ratio for non-performing financing assets reaching 97.2 percent as of June 2014 as compared to 85.5 percent in June 2013.
Standard & Poor's, in its latest report issued in June 2014, have reaffirmed QIB's Counterparty Credit Rating at 'A-' with a stable outlook. Similarly, Capital Intelligence (CI) in its latest report, has reaffirmed QIB's Financial Strength Rating of 'A', with an upgraded 'Stable' Outlook in view of the significant improvement in financing asset quality and stabilised Return on Average Assets. In 2014, Fitch had affirmed the bank's long term Issuer Default Rating (IDR) of 'A' with a stable outlook.
QIB has received a number of prestigious awards this year reflecting the results and achievements of the businesses, including the title of 'Best Islamic Bank in Qatar', which the Bank received from Euromoney, The Banker, World Finance and Islamic Finance News (IFN).