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QIB posts net profit of QR1.42 billion in first half of 2020

QIB posts net profit of QR1.42 billion in first half of 2020

Tribune News Network
Doha
Qatar Islamic Bank (QIB) on Wednesday announced that net profit attributable to the shareholders of the bank amounted to QR1.42 billion in the first six months of 2020 , which is in line with the performance during the same period in 2019.
Total assets of the bank stands at QR165.8 billion, a growth of 1.4 percent compared to December 2019 and 7.2 percent compared to June 2019. The growth in assets was driven by continued growth in the financing and investing activities, the bank said in a statement.
Financing activities reached QR112.3 billion having grown by 5 percent compared to June 2019. Customer deposits of the bank now stand at QR 106.6 billion, in line with June 2019.
Total income for six months period ended June 30 was QR3.972 billion, a growth of 6.4 percent compared to QR3.73 billion for the same period in 2019. Income from financing and investing activities registered a growth of 5.2 percent to reach QR3.558 billion compared to QR3,382 billion for the first half of 2019, reflecting a healthy performance in its core operating activities despite the support provided to the customers impacted by COVID-19 pandemic.
Total expenses for the six months’ period ended June 30, 2020 was QR551 million. Strict cost controls supported by higher operating revenues enabled further enhancement of efficiencies with cost to income ratio improving from 23.5 percent to 21.1 percent in the first half of 2020, the best in Qatar’s banking sector.
QIB’s efficient risk management framework has ensured that the results for the period ended June 30, 2020 have not been materially impacted by the events related to COVID-19. QIB was able to contain the ratio of non-performing financing assets to total financing assets at 1.4 percent reflecting the quality of the bank’s financing assets portfolio.
QIB continues to pursue the conservative impairment provisioning policy and has more than doubled the financing impairment charges to QR602 million in the first half of 2020 compared to QR298 million in 2019 and continues to maintain 100 percent coverage ratio for non-performing financing assets. The bank continues to take necessary actions and precautions for safety and well-being of its employees, customers and to the community at large.
Total shareholders’ equity of the bank has reached QR16.8 billion, up by 7.6 percent compared to June 2019. Total capital adequacy of the bank under Basel III guidelines is 18.6 percent as of June 2020, higher than the minimum regulatory requirements prescribed by Qatar Central Bank and Basel Committee.

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