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QIB QR 854 mn net profit for 2008 first half.

Summary: Qatar Islamic Bank (QIB) announced it has achieved record profits of QR 854 million for the first half of 2008 compared to QR 502 million for the same period of 2007 indicating a growth rate of 70.2 %. DepositorsCO share from the profits reached QR 166.5 million compared to QR 125.9 million in 2007 with a growth of 32.2 %. While the bankCOs assets reached QR 26.9 bn for the first half of 2008, a growth rate of 49.7 %, rising by QR 8.9 billion for the same period of 2007, and an increase of QR 5.6 billion or 26.4% from the end of 2007.

Qatar Islamic Bank (QIB) announced it has achieved record profits of QR 854 million for the first half of 2008 compared to QR 502 million for the same period of 2007 indicating a growth rate of 70.2 %. DepositorsCO share from the profits reached QR 166.5 million compared to QR 125.9 million in 2007 with a growth of 32.2 %. While the bankCOs assets reached QR 26.9 bn for the first half of 2008, a growth rate of 49.7 %, rising by QR 8.9 billion for the same period of 2007, and an increase of QR 5.6 billion or 26.4% from the end of 2007.

The bankCOs financing portfolio has risen at a growth rate of 59.4 % to QR 15.3 billion in the first half of 2008 compared to QR 9.6 billion in the first half of 2007. The investment portfolio recorded a growth rate of 71.9 % to QR 5.5 billion by the first half of 2008 from QR 3.2 billion in 2007, that was in parallel with the achievement of average return on assets at a rate of 7.6 % strengthening the bankCOs investing capability.

DepositorsCO current and saving accounts have risen to QR 15.5 bn at the end of the first half of 2008 from QR 10.4 billion for the first half in 2007, which is a growth rate of 49 %; hence, reflecting the depositorsCO confidence. ShareholdersCO rights have risen to QR 6.6 billion in the first half of 2008 from QR 3.9 billion for the same period of 2007; a growth rate of 69.2 %. Average return on shareholdersCO equity has risen by 32.6 %. Additionally, the earning per share has risen to QR 4.49 from QR 2.74 per share for the same period in 2007, a growth rate of 63.9 % that indicates the bankCOs growth and solid efficient performance.

C[pounds sterling]The year 2008 represents the first year of the five-year strategic plan through 2012. The first half results of 2008 reflects the time table that the bank board of directors, presided by Sheikh Jassim bin Hamad bin Jassim bin Jabor Al Thani, had approved for the commitment of reaching our objectives for the year,C[yen] said Salah Jaidah, chief executive officer of QIB. C[pounds sterling]The five-year strategic plan aims to sustain growth, increase profitability, consolidate our balanced financial position, create more awareness reagrding managing financial risks and consolidate business growth on the local and international levels. In addition to developing a productive and transparent business infrastructure we seek and to develop Islamic financial services to the market demands according to the highest recognized standards.C[yen]

Jaidah added: C[pounds sterling]The 2008 first half results assure that we are cruising with confident steps toward the achievement of record growth rates. The numbers prove the excellent work and achievements sustained over the past three years. In addition, Fitch has upgraded the bank grade to (A) ranking us second among the world top five Islamic banks and the second best bank in Qatar.C[yen]

In the first half of 2008, QIB has entered into investing and funding operation ventures such as offering US$150 million to fund the construction of Abu Fontas Desalination plant for the benefit of Qatar Electricity and Water Company. QIB has also enterred as a main partner and investment agent to facilitate the first Islamic financing for United Development Company (UDC) for the construction of Qanat Quartier project at a cost of US$ 600 million. This is in addition to financing several real estate projects such as Al Samaria towers at QR 450 million, Al Rames tower at QR 178 million and other projects. QIB stresses its role as a major leading player to support the national economy of Qatar.

QIB intends to enter into strategic ventures by playing a primary role to arrange financing operations in accordance with the Islamic ShariaCOa. QIB has signed a memorandum of understanding with Gulf Petroleum Company Co Berhard, Malaysia to study leading a joint integrated financing project to produce petrochemical bi-products in the north of the state of Perak at a cost of US$ 5 billion.

QIB received a license from FSA for the European Finance House (EFH) to work as an Islamic investment bank in the UK. Studies have been conducted to open further new banks and financial houses. QIB has signed a memorandum of agreement to establish an Islamic Fund in Kazakhstan. The bank is currently exploring expansion plans in Turkey, Egypt, the Arabian Gulf region and Southeast Asia via the Asian Finance Bank in which QIB owns a majority share.

QIB is expanding plans worldwide concurrent with the strategy of its board of directors. QIB owns 20 % of Shard of Glass London, which is worth two billion British pounds and has founded the Dhow MENASA for Investment Opportunities Fund at a capital of US$1 billion with Q-Invest and Silver Leaf Capital, this fund is considered the largest private fund for personal ownership in Qatar.

The investment atmosphere in Qatar offers excellent opportunities for expansions. QIB has been proceeding successfully to expand its branches and financial services to reach clients throughout Qatar through its network which includes 21 branches and 90 ATM machines.

QIB expansion on the local and international levels honors the ShariaCOa standards according to the Fatwa Authority which monitors all the banksCO activities and their financial operations in Qatar and elsewhere. The authority presents a unique model for Islamic auditing systems which makes it a reference for other Islamic financial institutions.

A[umlaut] 2008 Al Bawaba (www.albawaba.com)

A[umlaut] 2008 Al Bawaba (Albawaba.com)

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Publication:Mena Report
Article Type:Financial report
Date:Jul 17, 2008
Words:1071
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