Ambitious plans to complete the digital transformation and launch new services
Financing corporate and infrastructure projects and supporting entrepreneurs
A journey of distinguished achievements achieved by Qatar International Islamic Bank during its history, culminating in obtaining a number of international and regional awards as the best Islamic bank in Qatar, to demonstrate its great role in supporting the Qatari economy and promoting economic development, through the services and products it provides in the market, which contributed to Increasing its market share to be the leading bank in Islamic finance in Qatar and the region.
QIIB continued to rise to the level of competition in the market by strengthening the appropriate tools for that, whether developing infrastructure, human resources or approved policies, especially in the field of risks.
Increase operational efficiency
The bank is moving rapidly to complete the remainder of the digital transformation plan, increase operational efficiency and expand the customer base, by opening new digital branches and launching many services and products that meet the needs of customers by providing digital payment solutions and banking services.
The performance of QIIB and the strength of its financial position during the last period prompted the rating agencies to praise this strength, as the “Fitch” credit rating agency affirmed the bank’s long-term rating at the level (A-), while upgrading the outlook from a future outlook to a positive one, and the agency confirmed that the bank has solvency Strong financials, achieved good profits on the operational level and net profit, also enjoyed strong liquidity, and was able to develop a successful specialized business model.
The bank also completed the opening of the first QIIB digital lounge in Msheireb, and continues to develop this experience in order to adopt the best internationally approved banking solutions. For what the bank has achieved in responding to customers’ aspirations by launching payment products that suit them.
First quarter earnings rose
In terms of profits, QIIB achieved outstanding profits in the first quarter of this year, amounting to 316 million riyals, compared to 295 million riyals at the end of the first quarter of 2022, with a growth rate of 7.1%.
Net operating income at the end of the first quarter amounted to 474 million riyals, compared to 412 million riyals at the end of the first quarter of 2022, a growth rate of 15%. The bank also continued to enhance its operational efficiency, which contributed to reducing the cost-to-return ratio to 18.0%, which is considered one of the best ratios. In the Qatari banking sector, the bank maintained the stability of the non-performing debt ratio at 3.0%, which indicates the quality of the bank’s financing portfolio.”
QIIB’s total assets reached 55.0 billion riyals, and financing assets balances amounted to 35.0 billion riyals at the end of the first quarter, while customer deposits amounted to 35.7 billion riyals.
The capital adequacy (Basel III) is 18.4%, which represents a distinct ratio and higher than the limit required by the Qatar Central Bank.
The strength of the financial position
Dr. confirms. Abdul Basit Ahmed Al Shaibi, Chief Executive Officer of QIIB, said that QIIB’s results at the end of the first quarter are a reflection of the strength of its financial position and the great development achieved by the bank during the last period, which gives us more strength and confidence in the rich opportunities offered by the Qatari economy, which in its various sectors represents an exceptional and attractive environment. investments locally and internationally.
He adds, “We are continuing to implement the strategic and interim plans approved by the Bank’s Board of Directors, which emphasize involvement in the local market by participating in financing various projects, whether large and infrastructure projects, or small and medium-sized projects that depend on a lot in development.”
Dr. Al-Shaibi explains: “During the first quarter of 2023, QIIB continued to implement digital transformation plans with the aim of achieving more operational efficiency and keeping abreast of banking developments globally. It also continued its efforts to provide financing solutions that are appropriate to customers’ needs and aspirations, and the bank launched a number of competitive offers.” and products that suit their needs. He also launched the “Hamiyan” card, the national prepaid debit card.
The CEO explained: “The bank will continue its efforts during the coming period to achieve the targeted growth figures, and implement the necessary plans to enhance growth in the indicators, based on that on its high financial merit, while responding to the challenges in the market and the various factors of competition.”
Dr. confirms. Al-Shaibi: “The bank has continued during the past period and will continue in the future its policy of nationalizing jobs and attracting Qatari men and women to the various departments of the bank, while making sure to provide qualification and training opportunities for them, and to create all the reasons for upgrading the bank’s career ladder and in all banking and support specialties.”
Stable outlook
For its part, Moody’s credit rating agency affirmed its rating for QIIB at (A2/Prime-1) with a stable outlook, which indicates the strength of the bank’s indicators and its reliance on subjective and objective factors with high added value.
Moody’s, in presenting the rationale for QIIB’s rating affirmation, noted that the bank enjoys strong profitability with a return on assets of 2.1% for the first three months of 2023, supported by its Islamic banking franchise and exceptional operating cost effectiveness (cost-to-income ratio of 19.1% for the first three months of 2023). 2023).
Moody’s noted the decline in the bank’s dependence on market financing, as it fell to 17% in March 2023 from 29% in December 2019, along with QIIB’s strong liquidity, in addition to the bank’s strong asset quality. The agency stated that the stable outlook for the bank’s long-term ratings is a reflection of Moody’s expectations that the bank will maintain its strong profitability, capital and liquidity in the face of risks.
Which is confirmed by Dr. Abdul Basit Ahmed Al Shaibi, Chief Executive Officer of QIIB, this rating and this high rating from Moody’s confirms the strength of our financial position and our harmony with the status of the Qatari economy, which enjoys a fragrant reputation regionally and internationally. We certainly owe our high ratings to the status of the Qatari economy and its exceptional strength.
He adds that Moody’s rating of QIIB is gaining an additional dimension this time in view of the unusual conditions that global markets are going through, and the state of uncertainty experienced by many financial institutions in the world, resulting from the conditions of the global economy with high inflation figures in many countries, as well as the challenges Geopolitics that affected supply chains that were not fundamentally stable from the shock of the Corona pandemic, and led to an increase in the cost of commodities, which affected the markets.
Facing market fluctuations
Dr. Al-Shaibi indicated that what was stated in Moody’s report on QIIB’s rating clearly shows that we have succeeded to a large extent in facing emerging challenges and market fluctuations and achieved positive results in relation to various indicators based on our implementation of the strategic and interim plans approved by the Board of Directors, which have always focused on the local market. Facing risks according to a precise policy spared us any unwanted repercussions.
He explained, “QIIB also continued to improve performance and improve operational costs through decisive steps in the field of digital transformation, which led to results that were clearly reflected in the bank’s indicators, satisfied customers from various segments, and expanded their base.”
And the CEO of QIIB expressed his confidence that the distinguished trends monitored by Moody’s agency report on QIIB will continue their upward path with regard to the bank’s financial position and its various budget items during the coming period, by relying on the exceptional efforts that are being made, as well as taking advantage of the strong factors and opportunities that It is provided by the local business sector and the optimistic expectations of the growth trends of the Qatari economy in the next stage.
