QIIB net profit reaches QR 1,165 million with a growth rate of 8.3%.
Total net operating income increased to QR 1,974 million with a growth rate of 10.1% compared to 2022.
Total assets increased to QR 61.6 billion with a growth rate of 9.3% and total deposits increased to QR 38.9 billion, marking a 2.6% growth.
Earnings per share reached QR 0.70
Board of Directors recommends a cash dividend distributions of QR 0.45 per share (subject to QCB’s approval).
HE Sheikh Abdullah bin Thani: QIIB continues to improve its financial performance indicators, and we focus on leveraging the abundant potential opportunities offered by the Qatari economy.
Dr. Al-Shaibei: We aim to improve our operational efficiency and are keen to actively engage in the implementation of the objectives outlined in the Third Financial Sector Strategy, as approved by the QCB.
HE Sheikh Abdullah bin Thani bin Abdullah al-Thani, Chairman of QIIB Board of Directors, announced the bank’s 2023 year-end financial results here today.
These results indicate continued achievement of the Bank’s outstanding growth across various financial performance indicators.
The announcement of the results came after a meeting of the Board of Directors chaired by HE Sheikh Abdullah bin Thani bin Abdullah al-Thani that discussed the year-end financial statements for the fiscal year, which ended on December 31, 2023.
QIIB achieved a net profit of QR 1.16 billion, marking a 8.3% growth compared to 2022, with earnings per share reaching QR 0.7
QIIB’s Board of Directors has recommended to the General Assembly of Shareholders the distribution of a cash dividend of QR 0.45 per share (equivalent to 45% of the share’s par value).
This recommendation follows the consent of Qatar Central Bank (QCB) approval of the bank's 2023 financial statements.
Commenting on these results, HE Sheikh Abdullah bin Thani affirmed, “QIIB has achieved outstanding results during the past year, further strengthening its financial indicators. The bank's strategy succeeded in maintaining a focus on the Qatari market, while leveraging the abundant opportunities offered by the Qatari economy, which continues to demonstrate superior performance, thanks to the support and guidance of His Highness Sheikh Tamim bin Hamad Al Thani, the Amir of the State of Qatar.”
“The bank has been able to address various challenges and respond to market developments, continuing the implementation of its strategic plans. This has notably reflected on its performance, strengthening its position and achieving good growth rates”, he said.
His Excellency pointed out, “The bank has made significant strides in its operational performance. This improvement is attributed to various factors, mainly the remarkable success of the digital transformation plan.
“In 2023, QIIB accomplished a lot in this realm, forming partnerships with international companies to achieve more milestones in line with global developments and the significant technological advancements witnessed in the banking sector.”
HE Sheikh Abdullah bin Thani continued, “2023 witnessed many close collaborations with various local business entities. The bank continued to finance enterprises of various types, in line with our strategy focused on the local market.
“Special attention was given to the small and medium-sized enterprises (SMEs), recognising their role as a cornerstone in supporting and adding value to the broader segment of society. Emphasis on these enterprises also serves the goal of supporting entrepreneurs, who constitute a valuable asset in building the future.”
His Excellency highlighted, “The outstanding performance achieved by QIIB in 2023 has been reflected in the reports and ratings issued by international credit rating agencies, which have awarded QIIB superior ratings. Fitch rated the bank at A- with a positive outlook and Moody's at A2 with a stable outlook, while Capital Intelligence assigned it an A+ rating with a stable outlook.
“These agencies unanimously agreed that QIIB is a leading bank with strong profitability, high asset quality, high liquidity, and a good level of capital adequacy and cost efficiency. This positive trend is expected to continue in the long term.”
His Excellency the Chairman expressed gratitude to QIIB’s executive management and staff for their unwavering commitment and dedication throughout 2023, stating that “their sincere efforts have yielded positive results, benefitting both customers and shareholders.
He urged them to maintain these efforts in order to further develop the workplace, improve the banks’ performance indicators and achieve the best possible outcomes.”
On his part, Dr. Abdulbasit Ahmad al-Shaibei, QIIB’s Chief Executive Officer, detailed QIIB’s 2023 financial results.
He noted, “At year end, net operating income reached QR 1.97 billion, a growth rate of 10.1%, which confirms the effectiveness of management of the bank’s funding and investing activities, while total assets increased to QR 61.6 billion, with a growth rate of 9.3%. Net financing assets also grew by the end of the year to QR 36.5 billion riyals, with a growth rate of 4.2%. Concurrently, customer deposits rose to QR 38.9 billion riyals.
He stated: “Operational efficiency (cost-to-income ratio) continued to achieve exceptional levels throughout 2023, reaching 17.9%, which is among the lowest in both local and international banking sectors. This indicates excellent revenue and expense management, in conjunction with the increase in the banks’ key financial performance indicators.”
“At the end of 2023, total equity amounted to QR 9.5 billion, while Basel III capital adequacy stood at 17.0%. The bank also maintained the quality of its assets by maintaining the rate of non-performing financing to 2.9% and the coverage ratio to 87% indicating QIIB’s robust financial position and excellent management of various risks.”
Dr. Al-Shaibei explained, "QIIB’s 2023 results demonstrated the bank's ability to develop its tools, improve its indicators, and make progress in implementing the plans and strategies approved in response to various conditions and challenges faced by the bank throughout the past year, whether related to markets or other various factors.”
“QIIB worked diligently to enhance its operational efficiency, using various methods and means that have proven successful. Foremost among them is the bank’s substantial investment in modern technology and active engagement in the implementation of the digital transformation plans, where every opportunity in this realm has been capitalised upon to boost performance and provide customers with an exceptional banking experience that aligns with QIIB’s long-standing expertise”, he emphasised.
He noted, “Our broad interest in digital transformation processes and enhancing sustainability efforts, among other pillars, stems from our desire to align with the objectives of the Third Financial Sector Strategy approved by Qatar Central Bank in Q4, 2023. This strategy emphasised several pillars, including reinforcing the role of Islamic finance, digital innovation, environmental, social, and corporate governance and sustainability.
“Given the exceptional importance of digital transformation processes in the banking sector, QIIB has signed a memorandum of understanding (MoU) with Mastercard to establish a mutual strategic relationship.
“This move is initially aimed at focusing on the development of the bank’s digital channels in the field of international transfers and payments. Additionally, the bank has signed a MoU with FynPay, a FinTech company, with the aim of exploring a partnership to expand the digital channels at QIIB.”
In connection with the expansion of digital banking services, QIIB’s CEO clarified: “The bank places great emphasis on protecting its transactions and customers from various risks. In recognition of these efforts, QIIB has obtained the ISO 27001:2022 certificate in cybersecurity. The bank stands among the pioneers in Qatar to achieve this certification according to the new standards.
“Obtaining this certificate affirms that QIIB adopts a comprehensive approach that is more focused on cybersecurity-related risks, which ensures a more dynamic security framework and adaptability to emerging threats.
“Throughout the past year, QIIB launched numerous products, offerings, and promotional campaigns that captured the interest and attention of the bank's customers. These initiatives came in response to customer needs and aspirations, introducing services for the first time in Qatar, such as the ‘Swift Go’ remittance service, which provides seamless transfers for the bank's SME and individual customers.”
As for QIIB’s corporate social responsibility (CSR), he stated, "QIIB continued to implement its strategy in serving the community, whether through innovative products and services that provide added value to customers or by supporting a wide range of activities and events within its social responsibility framework.
“The bank contributed 2.5% of its profits to a fund dedicated to supporting sports, cultural, social, and charitable activities. Additionally, the bank provided support and sponsorship for various activities and events related to education, sports, rehabilitation, training, and sustainability.
“In particular, the bank sponsored the 6th International Conference on Entrepreneurship for Sustainability and Impact. This conference, which was held under the patronage of HE Sheikh Mohammed bin Abdulrahman al-Thani, Prime Minister and Minister of Foreign Affairs, and organised by Qatar University, is considered one of the most important conferences in the MENA region, as it brings together many researchers, experts, and specialists in entrepreneurship, innovation, excellence research, education, and practical experience. Furthermore, QIIB sponsored the 9th edition of ‘Made in Qatar 2023’ exhibition, reflecting the bank's commitment to supporting various national institutions, especially those contributing to production.”
In terms of human resources, Dr. Al-Shaibei noted, “During 2023, QIIB sustained its efforts to attract Qatari talents and recruited various competencies across its different departments and in banking, leadership, and supervisory roles. The bank also organised a recruitment day for male and female Qatari candidates, featuring job interviews for applicants conducted through the ‘Kawader’ platform, in the presence of representatives from the National Labour Department at the Ministry of Labour.
“A number of male and female applicants were selected for appointment to various banking positions within the bank. They underwent qualification and training according to advanced professional standards, ensuring their ability to perform their roles under optimal conditions. This guarantees their professional advancement and enables them to contribute effectively to serving their community.”
Dr. Al-Shaibei also emphasised that the bank will continue its policy of empowering Qatari men and women, in line with the State's strategy and governmental directives in this field, and in accordance with Qatar National Vision 2030.