OREANDA-NEWS. HE Sheikh Dr Khalid bin Thani bin Abdullah Al Thani, Chairman of the Board - Managing Director of the QIIB, announced the bank's financial results for the first quarter ending on March 31, 2016.

The results announcement followed a meeting of the Board of Directors on Tuesday evening, (April 19, 2016).

The results showed that QIIB achieved a net profit of QAR 223.1 million at the end of Q1-2016 compared with QAR 212.3 million for the same period in 2015, which indicates a growth of 5.1%.

This clearly reflects the success of the bank's strategy in continuing to grow and facing market challenges.

Announcing the Q1-2016 results, HE Sheikh Dr Khalid said the bank's results in the first quarter confirm that it continues to enhance its financial position and strength and moves forward. The bank was also able to successfully cope with the internal and external factors affecting the market during the last period.

He said, "We attribute our success and strength to the Qatari economy, which continues to achieve excellent growth rates in various sectors. We are also proud of the development of Qatar's economy, with the support and under the patronage of HH Sheikh Tamim Bin Hamad Al Thani, the Emir of Qatar.”

HE noted that the "market factors prompted QIIB to exert greater efforts and develop suitable plans particularly in terms of credit and liquidity, which have proven beneficial as these results were achieved during the first quarter; one that we hope to maintain during the next period. We also believe that all factors are clearly set, in light of the favourable indicators that show signs in many directions.”

He explained that "current large-scale projects in the domestic market are capable of creating significant growth opportunities for many sectors, particularly banking. And with QIIB's focus on the domestic market and specific opportunities with limited risks available externally, continuous growth driven by good figures is achievable and on hand".

HE Sheikh Dr Khalid thanked the executive management and all employees for the results achieved in the first quarter of 2016, confirming that the ambition is to register more growth, which can be realised through more efforts, in order to enhance customer service and increase shareholders' returns.

QIIB CEO Mr. Abdulbasit Ahmed Al-Shaibei detailed the bank's results and pointed out that the total revenue for Q1-2016 reached QAR 400.3 million compared with QAR 352.4 million at the end of the same period in 2015, which indicates a growth of 13.6%.

He said the bank's total assets at the end of the first quarter rose to QAR 41.3 billion, with a growth rate of 11.4%; while the bank's financing portfolio increased to QAR 25.7 billion compared with QAR 23.2 billion at the end of the same period last year, reflecting a growth of 11%.

QIIB’s deposits increased and reached QAR 27.9 billion, which represents a growth rate of 10.8% compared with the same period in 2015.

Capital adequacy under Basel III reached 17.0%, which reflects the strength of the bank's financial position.

Mr Al-Shaibei said, "These results have become possible because of strenuous efforts put in by the bank to meet various circumstances faced by the market, although we believe that the Qatari economy is strong, provides all the opportunities, and embedded with factors that enable market participants to grow sustainably. In view of this favourable and compelling market situation, the banking sector can grow by a wide margin, achieving satisfactory figures."

The CEO said, "The large number of infrastructure projects and major projects provides continuous growth avenues for most sectors, including the banking sector. All experts agree that Qatar's economy will be one of the few in the region to continue achieving strong growth figures thanks to its high liquidity, strong reserves and success in diversification initiatives. We at QIIB rely on all these factors and we were able to achieve this growth in the first quarter of 2016."

He said, "QIIB works actively in the local market and effectively engages in supporting various projects- regardless of whether they are major infrastructure projects or small and medium enterprises. QIIB attaches top priority to SMEs and gives special attention to them. In fact, the bank is a pioneer in supporting the SME projects. We are delighted that this type of projects has long-term developmental effects, which are reflected on a wide group of the community”.

Mr Al-Shaibei indicated that QIIB is in the process of issuing the first tranche (as part of its Tier 1 sukuk) of QR1bn in accordance with the Basel III requirements. Besides supporting the bank's Tier 1 capital in accordance with the Basel III requirements, the sukuk will support QIIB's ability to finance and improve its capital ratio.

He emphasised that the "market challenges are enormous and they compel us to focus more on our core banking activities and create new opportunities and revenue even while adhering to proven risk management policies. At the same time, we have always followed a very efficient policy in terms of risk management, which keep us in a comfortable position vis-a-vis various market factors that are prone to fluctuations.”

He stressed that "QIIB continues to work strongly to enhance our customer base and we give importance to our strategic development. In parallel with the geographic expansion through a network of new branches and ATMs, we invest in alternative channels such as internet banking, mobile banking and call center services. We also have encouraging signs in this area, which will further scale up our customer service.”

In terms of overseas expansion, Mr Al-Shaibei pointed out that the bank’s external plans currently focused on the Moroccan market, where it was waiting for the final approval from the Bank AlMaghrib for the opening of a joint venture bank in collaboration with ‘Credit Immobilier Et Hotelier Sa’ in Morocco. The JV bank will be ready to go once the final approval from the authorities in Morocco is received.

In the field of Human Resources, Mr Al-Shaibei explained that QIIB focuses on operating efficiency by attracting experts and talents. “Our priority is to recruit Qataris and give them the right ambience for growth. We have the best opportunities for Qataris in terms of career advancement and leadership roles and have an efficient training programme in place.” Regarding Corporate Social Responsibility (CSR), the CEO pointed out that in recognition of the leading bank's role in the field, the Qatar CSR Network chose the bank for the second year in a row to be honored during the ceremony, which was held at Qatar University under the patronage of HE Sheikh Abdullah Bin Nasser Bin Khalifa Al Thani, the Prime Minister and Minister for Interior. The bank will continue this policy that it has been carrying out since inception, offering support and assistance to various nonprofit community activities in sports, education, culture and religion among others.