Qatar Islamic Bank announced a QR1.32 billion ($362.5 million) net profit for the 2009 fiscal year, the profit stemming mainly from operating revenues and represents a 23 per cent growth rate from 2008.

Total equity increased to QR9 billion as of December 31st, 2009, a 26 per cent growth compared to the previous year. ROE rated at 20.4 per cent and earnings per share amounted to QR6.44 per share.

Based on these achievements, QIB's Board of Directors will recommend to the Bank's General Assembly which will be held on February 23rd 2010, to distribute a 60 per cent Cash Profit Distribution to shareholders, which corresponds to QR6 per share.

'During 2009, Qatar Islamic Bank adopted a well-structured plan for dealing with the downturns brought about by the global financial crisis and their impact on the Gulf region,” said Sheikh Jassim bin Hamad bin Jassim bin Jabor Al Thani, QIB chairman.

“QIB has successfully achieved the goals of the second year of its strategic five-year plan, in particular regarding the elements relative to consolidating growth, structuring a sound and balanced financial position, enriching our effective banking risk management and strengthening business expansion at local and international levels,” he added.

"Part of the essential role the Qatar Central Bank is playing is through the implementation of adequate banking and control policies which ensure sound performance of the country's financial institutions.

“The initiatives taken by the Government of Qatar through acquiring as shareholder a stake in the national banks' capitals via the Qatar Investment Authority, played a significant role in consolidating confidence in the Qatari banking sector, and therefore, in the national banks' financial positions.

"In 2009, QIB furthered its participation in the national economy by funding macro-companies in a new trend intended to further consolidate its leading role in financing national projects and establishing strong domestic partnerships which play a considerable role in realizing the country's development across all fields,” he concluded.

Regarding the Bank's additional 2009 financial highlights, financing income rose from QR1.328 billion in 2008, to QR1.826 billion in 2009, a growth of 37.5 per cent.

Depositors profit share increased from QR388 million in 2008, to QR510 million in 2009, a 31.4 per cent growth. Bank Assets grew 17 per cent, increasing to QR39.3 billion with increasing with QR5.7 billion in 2008. ROAA attained 3.6 percent to further consolidate the Bank's Financial Utilization Adequacy.

As for QIB's Financing Portfolio, it had grown to QR22.7 as of December 31, 2009, a 20 per cent growth compared to the 2008 rate of QR18.8.

Domestic Financing represented 94.6 per cent of the Portfolio. The Bank's Investment Portfolio amounted to QR4.6 billion at end of 2009, compared to QR6.3 billion in 2008.

Customers Current & Investment Accounts achieved a 23 per cent growth rate, amounting to QR 20.3 billion as at the end of 2009, compared to 2008's QR16.6 billion for Fall 2008, a result that reflects customers' increasing confidence in the bank's performance.

'QIB's local activities witnessed a positive growth in 2009, despite the worldwide economic situation and recession,” Salah Jaidah, QIB CEO said.

“QIB initiated several financing operations in the contracting, automotive, cables industries, as well as in public trading sectors.'

Jaidah noted QIB excelled throughout the year in organizing large Islamic financing operations for well-known institutions such as the QR4 billion deal for Qatari Diar in which QIB was named initial mandated lead arranger (MLA) and Sole Bookrunner for this Sharia'-compliant finance project.

This deal marked the first time a local Qatari bank had been appointed as the Sole MLA and Bookrunner for such a high-profile transaction.

This transaction, the largest syndication facility in Qatar in 2009, was also the largest one with a Qatari bank as sole MLA and Bookrunner. QIB also provided a $200 million Murabaha financing for QAPCO to finance the company's new low-density polyethylene-3 (LDP3) project.

During the past five years, QIB has expanded its international Islamic network, the world's first and largest, by enhancing its presence in the Middle East, Europe and Asia through QInvest licensed by Qatar Investment Authority, Arab Finance House in Lebanon, European Finance House in the UK and Asian Finance Bank in Malaysia.

This expansive network has allowed QIB to play a major role in enhancing Islamic banking operations and delivering products which fulfill increasing demands on Shari'a-compliant services.

Due to QIB's healthy performance, international rating agencies, Capital Intelligence and FITCH, both affirm QIB's rating as (A) stable. QIB has also been recognized as Best Islamic Financial Institution in Qatar by Global Finance Magazine. The bank operates as the largest Islamic bank in Qatar and one of the largest Sharia'-compliant banks in the world.

'QIB is committed to strategic local infrastructure projects and will continue to support large industries through innovative and sophisticated Islamic finance solutions,” Jaidah said.

“The bank will become increasingly active in the funding of small and medium-sized enterprises, and the public trade sector will continue to develop and launch new banking products for individual clients and companies.

“Our network of branches will reach 35 from 26 now by 2012, and QIB will persist in cultivating strategic partnerships with affiliates, as well as enhancing its planned expansion in local and international investments.'

'QIB is confident that the banking industry will respond positively to recent government support and we appreciate the wise guidance of and policy enacted by the Qatar Central Bank which was set forth to protect Qatari banks and was proven sound during the global crisis,” Jaidah concluded. – Reuters