Today International Bank of Qatar (ibq) announced its 2017 results which show total operating income up 13 per cent and net profit up 11 per cent, compared to 2016 with net profit reaching QAR 555.1 Million. This strong result was on the back of core underlying transactions emanating from our strong client franchise and is a testament to our Qatar focused business strategy. All business segments generated a positive year on year total income performance which contributed to the overall net profit increase.
Expenses were tightly managed and in line with expectations with the cost income ratio improving by almost 3 per cent to 34.4 per cent. ibq continues to rationalize its cost structure as appropriate while keeping pace with technology, security and safeguarding client data and assets.
The shape of the balance sheet was directionally sound as the asset quality remained strong and stable, with the non-performing loan ratio at 1.20 per cent even though total assets decreased by 7.5 per cent. Loans and advances improved by 3.4 per cent year on year while deposits declined at a marginal 1.7 per cent. However, deposits grew in the second half of 2017 by 10.2 per cent. ibq consciously reduced its dependence on interbank funding from the market by 35.4 per cent as additional liquidity was not required. Corporate governance remains pivotal as always. ibq’s financial stability and liquidity remains very healthy as reflected by all regulatory ratios being within the requirements of the QCB including our credit ratio and liquidity ratio.
Total capital adequacy of the bank under Basel III guidelines is now 15.34 per cent (2016: 14.25 per cent) and is higher than the regulatory minimum requirements prescribed by the QCB and Basel Committee.
ibq’s net interest margin and return on average assets improved on last year, and the Bank’s return on average equity now stands at a healthy 12.1 per cent, compared to 11.4 per cent last year.
Commenting on the Bank’s performance, Omar Bouhadiba, Managing Director said:
“This has been a year, in which we had to face unusual circumstances. That said, we proactively managed the balance sheet by reducing the bank’s dependence on volatile interbank money market facilities. Our clients were very supportive, and liquidity remained adequate at all times. ibq business continued at a healthy pace; our service quality was never compromised and the portfolio quality remained strong. Furthermore market driven challenges did not interfere with our business. In the end, we are particularly satisfied with ibq’s performance in 2017, for which we thank an exceptionally loyal client base and our dedicated staff. The Qatari banking sector is stable, well capitalized and professionally run. All banks are announcing good results, in spite of the events of last summer, which in the end had very limited impact. Huge credit also goes to the Qatar Central Bank, and the regulatory framework it put in place, which ensures the long term stability of the banking sector.”
H.E. Sheikh Hamad Bin Jassim Bin Jabor Al-Thani, as Chairman of ibq, added that these results were a sound performance on previous year resulting in the bank generating a net profit at QAR 555.1 Million, which was an 11 per cent increase. He commented that the results confirm that ibq is in a strong financial position and he commended management and staff for their dedication throughout the year for producing such a result.