Qatar Islamic Bank gets nod to raise AT1 Capital Sukuk limit

22/02/2017 07:39 AST

Qatar Islamic Bank's (QIB) ordinary general assembly has given approval to increase the limit of the perpetual Sukuk (Additional Tier1 or AT1 Capital Sukuk) from QR5bn to QR7.5bn, subject to Qatar Central Bank (QCB) decision.

The meeting, which approved the financial results for the year 2016, also gave nod to the board of directors' recommendation to distribute 47.5 percent cash dividends of the nominal value per share, meaning QR4.75 per share.

Addressing the meeting, Sheikh Jassim bin Hamad bin Jassim bin Jaber Al Thani, Chairman of the Board of Directors, said QIB has emerged as the second national player in the market in terms of assets, deposits, and finance. Offering a pioneering, secure, and stable Islamic banking and economics experience, QIB's net profit has increased during the same period by nearly 75 percent.

Despite global economic volatility, including a drop in oil prices, and a decline in investments, QIB was in the vanguard, continuing to develop as the fastest-growing national bank over the past three years. It will continue to invest in modernising and digitalising its infrastructure and services, and upgrading information security systems to ensure secure banking operations. Last year, QIB successfully solidified and reinforced its core system and structure by upgrading and introducing many policies and procedures, covering more than 20 business lines. As for 2017, QIB will continue to focus on seizing investment opportunities in the Qatari market, and closely following up with our subsidiaries abroad to leverage efforts made in the past. The Bank will also introduce a set of new products to attract additional local customers, and optimise our customer base, which has grown immensely since the establishment of Qatar's first and largest Islamic financial institution 35 years ago.

Sheikh Jassim said the year 2016 was a profitable and prosperous year for QIB. Compared to 2015, the bank's total assets last year increased by 10 percent, standing at QR139.8bn; customer deposits grew four percent, reaching QR95.4bn; and total income rose 22 percent to QR5.488bn. The Bank maintained a one-percent debt-to-income ratio, one of the lowest in the industry, as well as conservative impairment policy with an 87 percent coverage ratio for non-performing financing assets by the end of 2016.

The Peninsula