The Board has also recommended a further capital increase via a rights issue amounting to 20 percent to be floated in two stages, 10 percent in each stage during 2008 and 2009, with the aim of strengthening the financial position of QIB to meet the requirements of its expansion and execution of its strategic plans.
The financial results of year 2007 demonstrate the stability and strength of QIB’s financial position. During this financial year the depositors’ share of the profits reached QR343m, an increase of 33 percent over the previous year, and QIB’s total assets reached QR21.3bn as compared to QR14.9bn in 2006, recording an increase of QR6.4bn at a growth rate of 43 percent.
While the financing portfolio of QIB grew 62.5 percent increasing from QR7.2bn in 2006 to QR11.7bn in 2007, the investment portfolio increased by 43 percent moving from QR2.9bn at the end of 2006 to QR4.2bn in the financial year 2007. This growth was strengthened by an average return on assets of 7 percent, enhancing the bank’s efficiency of funds deployment to rank among the best in the regional banking industry.
Customers’ current and investment accounts rose to QR12.2bn in 2007 compared to QR8.8bn in 2006, a growth of 39 percent that clearly reflects the trust customers’ place in QIB. Total share equity increased to QR4.6bn in 2007 and the return on shareholders equity reached 31.2 percent, while earnings per share rose to QR10.52 against QR8.95 in 2006, a 17.5 percent growth.
Salah Al Jaidah, the Chief Executive Officer of QIB, said: “The exceptional results we have achieved are the fruits of successful implementation of our strategy that focused on developing and enhancing all QIB activities offered to both retail and corporate customers. We successfully expanded the financing operations and participated in major and unique investments both locally and internationally.
“Moreover, we have increased our retail network that has now grown to 22 branches and implemented effective risk management standards. The support offered by the QIB staff, which now exceeds 600 employees, has been exceptional. The fact that our key personnel have tremendous experience in the Islamic banking industry makes all the difference”
He added: “In 2007, we launched our new corporate identity, which reaffirms our commitment to be a pioneer in Shariah compliant financial solutions and our aim is to expand globally while providing continuous transparency and ethical banking solutions to our customers.”
Al Jaidah stated: “QIB is entering the year 2008 on a strong footing and is looking forward to another year of outstanding performance.” He announced that the bank has started the year by obtaining a license for the European Finance House (EFH), which has already commenced operations in the United Kingdom and is planning as well the expansion of Al Jazeera Islamic Company operations after the successful increase of shareholders number. QIB is also aiming to expand its finance institutions’ network and undertaking feasibility studies in Turkey, Egypt and other Gulf countries in addition to Indonesia and Brunei as part of expansion plans of the Asian Finance Bank.
The local expansion in retail services continues. The network of branches already numbers 22 and is set to go up to 35 in the coming year. QIB is also working to expand the financing operations in large projects and playing a pioneering role in the field of Sukuks (Islamic bonds) issuance.
