Posted on February 13, 2017
  • Total assets of QAR 35.8 billion as at 31 December 2016 were 12 per cent higher when compared to the QAR 31.9 billion as at the end of last year
  • Loans and advances at QAR 21.3 billion as at 31 December 2016 were 3 per cent higher than the QAR 20.7 billion as at the end of last year
  • Customers’ deposits of QAR 21.7 billion as at 31 December 2016 were 8 per cent higher than the QAR 20.2 billion as at the end of last year
  • Operating income for the year was 5 per cent higher at QAR 784.1 million as compared to QAR 747.1 million for 2015 driven mainly by higher fees, foreign exchange and investment income
  • Net profit for the year ended 31 December 2016 was 25 per cent higher at QAR 500.3 million as compared to QAR 400.1 million for last year as the net impairment charge reduced
  • Loans to Deposits ratio (LDR) was at 98.0 per cent
  • Capital adequacy ratio continues to be robust at 14.25 per cent, after dividend payout
  • Cost to income ratio at 37.3 per cent
  • Liquidity ratio at 123.4 per cent
  • Non performing loan ratio now at a healthy 1.21 per cent

Performance Review

International Bank of Qatar (ibq)’s net profit for the year ended 31 December 2016 increased by 25 per cent to QAR 500.3 million as compared to QAR 400.1 million for 2015. Operating income increased by 5 per cent to QAR 784.1 million, mainly due to a 3 per cent increase in foreign exchange to 68.1 million (2015: QAR 66.2 million), fees and commission increasing by 4 per cent to QAR 128.6 million (2015: QAR 124.1 million) and investment income posting QAR 20.9 million.

The Bank further expanded its retail distribution network during the year and continued to focus on its strategic initiatives to grow the personal and business banking business segments, resulting in higher variable costs to support increased business volumes. Cost to income ratio stood at 37.3 per cent. The Bank continues its prudent approach to provisioning in the current economic environment. Net Impairment recovery of QAR 8.3 million reported is mainly due to the Corporate & Private banking client recoveries against a net impairment charge QAR 72.4 million mainly related to one Corporate customer which was fully provided for in 2015.

Balance Sheet

Loans and Advances of QAR 21.3 billion as at 31 December 2016 registered an increase of 3 per cent when compared to QAR 20.7 billion as at 31 December 2015 mainly from growth in the Corporate Banking portfolio.

Customers’ Deposits of QAR 21.7 billion as at 31 December 2016, increased by 8 per cent compared to QAR 20.2 billion as at last year end. Current and Savings accounts constituted approximately 20 per cent of total deposits. Overall asset quality remained strong, in spite of the deterioration in the broader market conditions. Decline in non-performing loans (NPL) coupled with increase in loan book resulted in drop of NPL to gross loan ratio from 2.2 per cent as at end of December 2015 to 1.2 per cent as at 31 December 2016.

Liquidity and Capital adequacy

The Bank’s liquidity continued to be comfortable with strong metrics from the Net Stable Funding Ratio, Liquidity ratio and the Liquidity Coverage Ratio (LCR). ibq’s capital adequacy stood at 14.25 per cent (after dividend payout) and was above the regulatory threshold mandated by the Qatar Central Bank.

Commenting on the Bank’s performance, Omar Bouhadiba (pictured), Managing Director said: “Our performance in 2016 was robust, with all parameters pointing in the right direction. Operating income showed good growth in a difficult environment, as did profitability. To preempt any possible challenges to our credit quality that could have come from a weaker economic environment, we focused intensely on credit management. This actually resulted in an improvement of our portfolio, as testified by a drop in our NPL ratio from 2.18 per cent in 2015 to 1.21 per cent in 2016, low by any standard. Liquidity was adequate at all times, although we had to cope with a rise in funding cost. This was balanced by the rapid growth of non-interest income, which increased 22 per cent. Service excellence remained to our usual high standards, and all surveys show a high level of client satisfaction with our bank.”

The Bank starts 2017 from a solid position. ibq’s total capital adequacy is well ahead of the regulatory requirement set by the Qatar Central Bank we are confident that ibq will maintain its growth trajectory. H.E. Sheikh Hamad Bin Jassim Bin Jabor Al-Thani, as Chairman of ibq, added that these results were a solid performance on previous year resulting in the bank generating a net profit at QAR 500.3 million, which was a 25 per cent increase. He commended management and staff for their determination throughout the year for producing such a result.