DOHA, January 26, 2021: QIIB Chairman and Managing Director His Excellency Sheikh Dr. Khalid bin Thani bin Abdullah al-Thani, announced the results of the bank’s activities for fiscal year 2020. The results reflected the bank's ability to deal with the challenges and market factors, which was aligned with the strength and high solvency of the Qatari economy, in its various sectors.
The results were announced after the meeting of QIIB's Board of Directors, chaired by HE Sheikh Dr. Khalid bin Thani to discuss the financial statements for the year ended on December 31, 2020, during which the bank achieved a net profit of QR 937.7 million, with a growth rate of 1.2% compared to 2019 year end, and earnings per share equal to QR 0.55 (EPS: QR 0.55)
The Bank's Board of Directors have recommended to the General Assembly, the distribution a cash dividends of 32.5% of the nominal share value (QR:0.325 per share), subject to QCB's approval of financial results for year 2020 along with the proposed cash dividends.
HE Sheikh Dr Khalid bin Thani affirmed, "The bank's results for the ended on December 31, 2020 have clearly proven the bank's ability to maintain the stability of its financial and profitable indicators, while overcoming the factors that shook the world's markets in 2020, especially after COVID-19 pandemic ramifications.
“This in itself is a great achievement, which we owe, in the first place, to the wise strategy adopted by the Government and the supervisory authorities to support the Qatari economy in its various sectors, under the directives and the patronage of H.H. the Amir of the State of Qatar, Sheikh Tamim bin Hamad al-Thani.”
HE Sheikh Dr. Khalid stated, "QIIB implemented a comprehensive plan to deal with and manage the unexpected circumstances and various risks. QIIB’s plan have also focused on enhancing the bank's operational performance, taking advantage of the opportunities provided by the Qatari economy and effectively coordinating with various business sectors, to cope with the unforeseen circumstances. This strategy succeeded to a large extent as QIIB's financial indicators kept growing and we were able to maintain stability, and more importantly, to enhance our operational efficiency".
He added, "The local market on which we permanently focus, have provided many opportunities and have prevented us from resorting to alternative plans. This strategy reinforces the right vision we have had which is reflected in focusing on various local projects. Those projects, whether large, medium or small, represent the most beneficial opportunities to achieve growth on one hand, and participate in our country's development on the other".
HE the QIIB Chairman and Managing Director said, "Despite the unprecedented factors, the banking market was competitive during the past year on different levels. This presents an important motivation for us to improve our performance, enhance innovation and provide the best services and products to our retail and corporate customers. We believe that responding to the market’s competitive factors was the most important feature that distinguished QIIB during the past year".
HE Sheikh Dr Khalid bin Thani said, "In addition to the stable results, QIIB's most important achievement during the past year was the bank's great stride in digital transformation. We have noticed a real boom in the services presented to customers, with which they can now acquire through various digital channels. We are pleased with our achievements in this field thus far, keeping in mind there’s much more to be accomplished, vis-a-vis digital transformation in the future".
He also said, "In view of the important indicators achieved by QIIB, international credit rating agencies recognised the strength of the bank's financial position, as Moody's and Fitch confirmed the bank's rating at ‘A2’ and ‘A’ respectively with a stable outlook. This was based on several important factors, one of which, is the bank's high-quality assets. Also, another factor is the bank’s profitability ratios, which are considered strong compared to its local counterparts. The bank has efficiently managed its operational costs and has managed a high-quality investment portfolio. Not to mention the significant decrease in rate of its financial non-performing loans.
The Chairman and Managing Director expressed his gratitude to QIIB's executive management and employees for their outstanding efforts during 2020, which was an exceptional year, in terms of challenges and achievements.
He also urged everyone to continue to utilize their best efforts to achieve the goals and implement the plans and strategies that would in return benefit everyone.
On his part, QIIB Chief Executive Officer, Dr. Abdulbasit Ahmed al-Shaibei clarified the bank's financial results for year end 2020 and said, "The bank's total income at year end amounted to QR 2,450 million, whereas the bank's total assets reached QR 61.3 billion compared to QR 56.8 billion at the end of 2019, with a growth rate of 7.9%. The bank's financing activities at the end of 2020 increased to QR 40.5 billion compared to QR 37.0 billion at the end of 2019, indicating a growth rate of 9.5%. Also, customer deposits grew by 16.2% at the end of 2020 to QR 36.2 billion”
As for QIIB’s net profit, Dr. Abdulbasit has explained that it has increased at the end of 2020 to QR 937.7 million compared to QR 927 million as end of 2019, with a growth rate of 1.2%; even though QIIB have charged provision for financing assets and investments in the amount of QR 397 million for the year 2020. Whereas, earnings per share have amounted to QR 0.55.
CEO also referred to the QIIB’s efforts during 2020 to control and regulate the operational cost, which in return improved operation efficiency (Cost Benefit Ratio), that has become 20.3% compared to 24.1% as end of 2019. This considered a one of the most efficient indicator either locally or internationally.
QIIB have also worked on increasing the quality of our financing assets, by decreasing non-performing financing percentage as end of 2020 to become 1.6% compared to 1.9% as end of 2019, which only proves the effectiveness of credit risk policies and collections at the bank.
CEO also noted, "The total equity right at the end of 2020 reached QR 8.3 billion, while the capital adequacy under Basel III stood at 16.6%, thus reflecting the strength of QIIB's financial position, bearing in mind the various risks in the market".
Dr. al-Shaibei affirmed, "QIIB's financial results for 2020 confirm the bank's ability to maintain the ascending pattern of its indicators, despite the unprecedented challenges at hand during the past year for all sectors, particularly the banking sector.”
He added, "The decisive factor that helped the bank achieve the positive results that are announced today, is the strength of the Qatari economy and the important measures taken by the Government and supervisory authorities to face the rapid developments. The Qatari economy has proven to be one of the most important regional and international economies, and it also has proven capability of facing challenges of all types".
Dr. al-Shaibei pointed out, "During the past year, the bank's professional personnel exerted great efforts to face the new circumstances and have proven that challenges can indeed be turned into opportunities. QIIB was able to make a great stride in digital transformation, when implementing a digital banking transformation plan that was initiated years ago. “The plan was moving as per schedule; however, the new and unprecedented circumstances tipped the scales. Behavior and perception towards banking services in their traditional form have changed, which in return prompted the bank to take the lead towards increasing the number of services it provides via digital channels. Accordingly, what the bank was planning to achieve in years, have been completed within a few months".
He said, "The issue required great efforts and rigorous cooperation within various departments, divisions and support teams inside and outside the bank. The results, thank God, were satisfactory, keeping in mind that the steppingstone was already set up at the time, when the bank has continuously invested systematically in technology solutions. QIIB was able to provide most services to its customers through alternative channels. Not only that, the number of services and the speed thereof offered were met with great satisfaction from customers. In return we have witnessed an increase in the number of customers who used the alternative channels. The positive change in the culture of obtaining banking services was a vivid achievement.”
Al-Shaibei stressed, "The speedy digital transformation and the successful implementation of the relevant plans, have contributed to the improvement of the bank's operational environment, enhancement of efficiency and reduction in costs, which in turn, reflected on the bank's results. We hope that this will be further enhanced in the upcoming period as we can benefit from the past year's lessons and experiences to improve various operation and performance indicators".
"During the past year, QIIB continued to implement the strategic vision laid out by the Board of Directors, which focuses on the local market and on the financing of various business sectors, considering that the Qatari economy provides opportunities that are hard to find in other economies. Our focus on the local market is also considered a national duty, aimed at taking part in the country's overall development plans".
He stated, "QIIB also has continued to implement its foreign investment policy, while complying with the controls and standards adopted a long time ago, in terms of foreign investment risks. Thus, QIIB focused on strengthening partnerships, which have proven to be beneficial and lucrative so as to enhance the bank's financial position and maximize returns for shareholders".
"We launched many new retail and corporate products and services during 2020, such as the salary card, corporate cash deposit card and domestic worker card, as well as many financing offers targeting various categories such as real estate financing offers, personal financing, vehicle financing and special card offers. Last year, QIIB launched the new Points portal that was developed within the framework of the bank's strategic partnership with MasterCard, with the aim of providing a wide range of benefits to customers through the famous MasterCard rewards system. The bank also established effective partnerships with reputable local companies such as “Qatar Airways” and “ooredoo” to offer a wide range of options to the bank's customers that allows them to obtain the best banking services with rewards from high-level partners".
Dr Al-Shaibei pointed out, “The bank found appreciation and recognition at the local and international levels during the past year, since international rating agencies affirmed the bank’s high rating. QIIB also won a series of awards, the last of which was "Qatar Most Innovative Islamic Retail Bank" for 2020 by the Islamic Retail Banking Awards Committee in cooperation with the University of Cambridge in the United Kingdom. As you can see, QIIB have taken the lead and a pioneering role in Islamic banking. Its solid financial position and its ability to steadily withstand the latest developments and market factors while maintaining stable growth rates. The prestigious Red Money Institution also honoured QIIB with four awards as part of the IFN Awards 2020 in recognition of the bank’s achievements, especially the issuance of permanent instruments within the first tranche of capital, valued at $300 million. Red money considered many factors for awarding the bank these four prizes, including "Deal of the Year" and "Capital Deal of the Year" for 2019. Those factors were, the great success achieved by the bank in issuing the sukuk, and the high confidence and credibility it built with investors, who were attracted by the bank's Sukuks. The bank also won the "Best Islamic Digital Bank in Qatar" for 2020 from the World Union of Arab Bankers, as well as the prestigious "PCI" certificate in the field of information security for the fifth time in a row.”
Along with its success in the banking sector, QIIB continued to play a vital role in the field of social responsibility. Dr al-Shaibei stated, “As part of the bank's commitment to its role in serving the Qatari community, we continued to provide support and assistance to a wide range of non-profit activities and events during 2020. The bank allocated 2.5% of its profits to a fund that supports sports, cultural, social and charitable activities, to contribute towards to advancement of the efforts aimed at achieving the goals of Qatar National Vision 2030.
“QIIB also provided support to Qatar Banking Studies and Business Administration Secondary Schools for boys and girls, since it is deemed an important tool in developing national competencies and empowering citizens in the banking sector. The bank also supported the education, qualification and training of Qatari young men and women and provided them with an in-house training in banking and administration.
“Furthermore, the bank made many contributions that go towards supporting sports, cultural, charitable and religious activities to deepen compassion and solidarity and in order to contribute to the preservation of our society's traditions".
In the field of human resources, the CEO confirmed that, “QIIB is actively engaged in supporting and empowering Qatari men and women, who wish to join the bank’s staff and is fully committed to the government vision to empower citizens. Therefore, the bank is working closely with the authorities concerned to implement plans and programmes that guarantee the recruitment of more Qataris in the bank, prepare them to take various positions and provide them with the necessary expertise through qualification and training programs, to become banking leaders in future