Tuesday, March 2, 2021
Home /  Business  /  QIB gets nod to raise Sukuk issuance limit to $5 bn at virtual AGM

QIB gets nod to raise Sukuk issuance limit to $5 bn at virtual AGM

QIB gets nod to raise Sukuk issuance limit 
to $5 bn at virtual AGM

Tribune News Network
Qatar Islamic Bank (QIB) held its Assembly General Meeting on Monday virtually via Zoom. The meeting was headed by QIB Chairman Sheikh Jassim bin Hamad bin Jassim bin Jaber Al Thani. The meeting covered all the points on the agenda.
The assembly approved the increase of the limit for QIB’s USD Sukuk programme to become $5 billion instead of $4 billion, subject to QCB approval. The assembly also approved the board of directors’ proposal to distribute 40 percent cash dividends of the nominal value per share amounting to QR0.40 per share.
Speaking on the occasion, Sheikh Jassim said, “The year 2020 has been an exceptional year at all levels, due to the impact of the COVID-19 pandemic on economies across the globe, as well as regionally and locally. However, thanks to our commitment and hard work, in addition to the government’s support, and the exceptional efforts of the executive management team and staff, we have been able to successfully navigate the crisis, while managing the challenges faced by our customers and employees alike. QIB has taken a proactive response to the economic implications of the pandemic by postponing financial instalments for SME’s and individual customers, as well as for all affected sectors, taking part in the COVID-19 National Guarantee Program, devised by the State of Qatar and the Qatar Central Bank.”
“We have successfully achieved business continuity, providing our products and services to our clients, individuals and corporate, thanks to the recent investments we have made in our digital transformation strategy. QIB’s advanced digital channels played a key role in achieving business continuity, smoothly and effectively, and we were praised for helping our customers, having demonstrated our leadership in providing the best digital banking services, whilst ensuring the safety of our customers, employees, and the community at large as our top priority. We have been also able to provide various types of support to the community, which significantly contributed to QIB receiving a number of awards regionally and globally, by specialized organizations and international publications, acknowledging our outstanding response to the pandemic, and safeguarding our operational environment,” Sheikh Jassim said.
During the past year, he said, the bank was also able to successfully complete issuances of Sukuks worth $1.65 billion including first ever Formosa Sukuk to be issued by any bank and provide various alternatives to stabilize liquidity and maintain very good asset quality, with major improvements in information security, in full compliance with all regulatory guidelines.
“In light of all those achievements, despite the exceptional challenges faced this year, QIB has reiterated its position as one of the largest Islamic Banks in the region and one of the strongest across the globe, with assets growing from QR163.5 billion in 2019 to QR174.4 billion In 2020, and customer deposits also growing from QR111.6 billion in 2019 to QR118.1 billion, while the total income reached QR 7,958 million, registering 3 percent growth compared to the year 2019. On the other hand, QIB was able to manage the ratio of non-performing financing assets to total financing assets at 1.4 percent, one of the lowest in the industry, while it continued to pursue the conservative impairment policy maintaining a healthy 92.3 percent coverage ratio for non-performing financing assets as of December 2020,” he said.
Within this positive context, he said, QIB achieved net profits of QR3.065 billion for 2020, at the same level as the previous year’s results, despite the exceptional circumstances.