Tribune News Network
Doha
QIIB Chairman Sheikh Dr Khalid bin Thani bin Abdullah al Thani announced the bank’s year-end financial results for 2024, highlighting continued growth across key financialindicators.
The results were announced following a meeting of QIIB’s board of directors, chaired bySheikh Dr Khalid bin Thani, to review the final financial statements for the fiscal year ending on December 31, 2024.
The bank reported a net profit of QR 1.26 billion in 2024, representing a growth rate of 8.2 percent compared to 2023, with earnings per share reaching QR0.77 QIIB board of directors proposed to the general assembly of shareholders the distribution of additional cash dividends to shareholders at a rate of 27 percent of the nominal value per share (equivalent to QR0.27 per share), taking the total cash dividends to 50 percent of the nominal value
per share. This recommendation remains subject to approval by the Qatar Central Bank and the general assembly of shareholders. It is worth noting that QIIB had previously distributed interim cash dividends to shareholders at a rate of 23 percent (equivalent to QR0.23 per share) for the first half of 2024.
Sheikh Khalid said, “QIIB has consistently delivered outstanding results over the past year, driven by its robust financial position and the opportunities provided by the thriving Qatari economy, which continues to grow and prosper under the wise leadership of the country.”
He said, “QIIB has successfully improved its performance indicators, achieved solid growth rates, and effectively executed its plans and programs. These efforts have positively impacted the annual results, inspiring confidence, and a positive outlook for the coming period.
“QIIB has significantly enhanced its operational efficiency, leveraging the remarkable advancements in digital transformation achieved over the past period. The bank has also successfully developed practical solutions to address market challenges and mitigate potential risks.”
He said, “QIIB’s strong financial position and positive indicators have received international recognition, as reflected in the bank’s high credit ratings from leading global agencies. Fitch and Moody’s reaffirmed QIIB’s ratings at ‘A’ and ‘A2’ respectively, with a stable outlook.
These ratings reflect key strengths, including the bank’s strong profitability, solid presence in the Islamic banking sector, robust liquidity and capital reserves, and high operational efficiency.” Highlighting QIIB’s commitment to the local economy, he said, “QIIB continues to be a trusted partner for the local business sector, having established extensive relationships across various industries and contributing to the financing of numerous projects that add value to the local business environment. The Bank remains committed to this policy of focusing on the local market, recognising the growth opportunities it offers, while also considering it a duty and a contribution to national development.”
Sheikh Dr. Khalid bin Thani expressed his gratitude and appreciation to QIIB’s executive management and employees for their outstanding efforts throughout 2024.
He encouraged everyone to continue their dedicated efforts to strengthen QIIB’s position and indicators, address various challenges, and enhance the work environment in line with the bank’s strategic ambitions.
For his part, QIIB Chief Executive Officer Dr Abdulbasit Ahmad Al Shaibei provided a detailed overview of the bank’s financial results for 2024, stating: “Total revenue by the end of the year reached QR 3.52 billion, marking an increase of 15.2 percent compared to 3.06 billion in 2023.
QIIB’s total assets amounted to QR 60.0 billion, while net financing assets increased to QR 39.3 billion, reflecting a growth rate of 7.7 percent and customer deposits increased to QR 41.4 billion, reflecting a growth rate of 6.3 percent.”
He said, “QIIB continued to enhance its operational efficiency (cost-to-income ratio) in 2024, achieving 18.8 percent, one of the best ratios in the local banking sector. We remain committed to disciplined expense management alongside revenue growth, while maintaining the upward trajectory of the bank’s key financial indicators. The bank also maintained the quality of its financing portfolio, as non-performing financing assets representing 3.3 percent of total financing assets, while the bank continued to strengthen the provisions for these assets, so that the coverage ratio reached to 100 percent by the end of 2024, which confirms the effectiveness and efficiency of the bank’s risk framework and conservative approach.”
He said, “Total equity at the end of 2024 amounted to QR9.60 billion, while the capital adequacy ratio, as per Basel III requirements, stood at 19.3 percent, exceeding regulatory standards. This reflects the strength of QIIB’s financial position in navigating market conditions and mitigating various risks.”
Al Shaibei said, “QIIB’s 2024 results align with the plans and strategies set by the board of directors and were implemented with precision. These results also reflect the favourable conditions across key economic sectors in the state, offering exceptional financing opportunities that enable us to achieve our targeted growth figures.”
He said, “As part of strengthening the bank’s capital base and leveraging opportunities in the international sukuk market, QIIB issued Tier 1 capital sukuk worth $300 million, which were listed on the London Stock Exchange. The sukuk witnessed strong investor demand, with subscription requests exceeding eight times the issuance size. The offering attracted a large number of investors from around the world, with total bids surpassing $2.5 billion. The issuance was priced at a profit margin of 187 basis points above the five-and-a-half-year US Treasury average, marking the lowest margin for such issuances by banks locally and regionally, with a final annual yield of 5.45 percent.”
Al Shaibei said, “The year 2024 was marked by numerous achievements and progress in delivering exceptional products and services to our individual and corporate clients. We continued to implement our digital transformation plans, achieving tangible milestones that significantly enhanced our operations. Among these was the launch of a first-of-its-kind service in the local banking sector—personal financing rescheduling through our mobile banking app. This service now allows customers to reschedule their personal financing instantly and seamlessly through mobile banking.”
As part of advancing its digital transformation efforts, he said, “QIIB also launched its digital platform for issuing letters of credit, enabling clients to complete the process without the need to visit the bank. QIIB is the first bank in Qatar to introduce this service. The platform is distinguished by its high standards of efficiency, accuracy, and security, providing companies with the tools they need to seamlessly handle trade finance transactions, thereby enhancing productivity and competitiveness.”
Al Shaibei said, “In 2024, QIIB’s product portfolio was significantly enhanced with the launch of the Joud’s savings account. This innovative savings solution offers customers quarterly profit distributions and the chance to win 141 prizes annually, including a grand prize of QR1 million. Additionally, the bank introduced its latest solution for businesses—the Visa debit card for small and medium enterprises.”
This card provides advanced and convenient payment solutions and a range of features designed to provide added value to customers.”
Further highlighting the bank’s achievements, he said, “In light of QIIB’s progress in improving its financial indicators and enhancing its services, the bank received both local and international recognition, earning several prestigious awards. Among these is the ‘Excellence and Banking Achievement in Islamic Corporate Banking Services for 2024’ award from the Union of Arab Bankers, which acknowledges QIIB’s significant accomplishments in developing corporate services and products, including services introduced for the first time in the Qatari banking sector.”
“QIIB was also honoured with the ‘Excellence in Corporate Payment Solutions’ award from Visa International for 2024, highlighting its leadership in corporate payment solutions as the first bank in Qatar to launch a debit card for small and medium enterprises. “Additionally, the Bank received the ‘Excellence in Mobile Banking Services’ award at the Finovex Qatar 2024 Summit, which focused on technology and innovation in banking. Further underscoring its leadership in cybersecurity, QIIB was awarded the PCI-DSS 4.0 certification, the highest standard in cybersecurity and payment protection.”
On QIIB’s sustainability efforts during 2024, Al-Shaibei said, “Last year marked a significant milestone in integrating the concept of sustainability into the bank’s plans and projects. We published our first Sustainable Finance Framework, designed to support projects that provides environmental and social benefits.
“We also achieved outstanding success with the issuance of the ‘Oryx’ sustainable sukuk, valued at $750 million. As the first Qatari bank to issue sustainable sukuk, we are proud to have attracted significant interest from over 120 investors across the globe, including from the Gulf, the Middle East, Europe, Asia, and the Americas, with more than 55 percent of subscriptions coming from outside the Gulf and Middle East.”
“The total bids exceeded $4 billion, more than eight times the issuance size. The sukuk were priced at an annual profit rate of 5.247 percent and are now listed on the London Stock Exchange.
“In line with its sustainability objectives, QIIB launched its Green Financing product for electric and hybrid vehicles, reaffirming the bank’s dedication to providing high-value financing solutions for customers. This initiative aligns with Qatar National Vision 2030, which emphasizes the importance of environmental preservation, public health, and sustainable development. To further promote sustainability efforts and support related initiatives, the bank signed a Memorandum of Understanding (MoU) with the Gulf Organisation for Research and Development (GORD). The MoU aims to foster collaboration on various initiatives that enhance sustainability and advance green financing.”
The QIIB CEO said, “The bank’s distinguished position - locally and internationally brings with it a profound social responsibility, which QIIB has fully embraced through its ongoing initiatives and contributions to the community. As part of this commitment, the Bank signed a sponsorship agreement with the Qatar Football Association, under which QIIB will serve as the main sponsor of the Amir Cup and the national teams’ championship for three years starting February 2024.
“This sponsorship reflects the bank’s commitment to aligning with the Third Strategic Plan for the Financial Sector launched by the Qatar Central Bank, which prioritizes environmental, social, and corporate governance (ESG) and sustainability. At QIIB, we are dedicated to serving our community by supporting activities, events, and initiatives that add value to our nation and align with Qatar National Vision 2030. Supporting sports, with all the values and principles it represents, remains an integral part of QIIB’s mission.”
QIIB’s community contributions extended beyond sports, as the bank continued to support a wide range of activities and events across education, the environment, religion, culture, and more. These initiatives are designed to add value to society, foster progress, and benefit the broadest possible segments of the community.
Focusing on human resources, Al Shaibei said, “QIIB places great importance on attracting and empowering Qatari men and women within its organisational structure. To achieve this, the bank provides the tools necessary for their professional growth while systematically enhancing their roles to help them realise their ambitions and deepen their expertise and knowledge.
“The bank has also sustained its efforts to support the training, education, and development of young Qataris by offering opportunities across its branches and departments in banking and administrative specialisations.
“In recognition of these efforts, QIIB was honoured last year by Qatar University for its contributions to training and academic support, reflecting the bank’s dedication to implementing its human capital strategy. This strategy prioritises serving the community through value added initiatives, such as education, development, and training.”
