(The Group's Comment) QIIB Net Profit Rises 6% to QR882.1 Million in 2018

• Qatar International Islamic Bank announced its results for 2018, showing net profits of QR 882.1 million compared to QR 832.2 million in 2017, up by 6.0%.  Earnings per share amounted to QR5.46 compared to QR 5.35 at the end of 2017, up by 2.1%.  Though profit rose only by 6%, dividend increased only  by 2.1%, as result of the rise of share of sukuk holders, which is  treated as capital from QR23 million at the end of 2017 to QR55 million at the end of 2018.
 

• The following table shows quarterly earnings

 
 
• The Bank's assets increased by 7.8% in 2018 compared with the previous year. This improvement resulted from an increase in bank balances due to QR 9.5 billion between 2018 and 2017, which offset the decline in finance assets which decreased by 5.0 (24.85%) compared to the previous year, which is a significant decline in one of the most important sources of revenue of the bank. Murabaha decreased by QR5 billion with 19%. The outstanding debts amounted to QR 598 million at the end of 2018 or 2.0% of total financing assets, compared to QR 453 million or 1.32% at the end of 2017.
 
• Regarding deposits, customer deposits increased slightly between 2007 and 2018 and reached QR 6.9 billion.  While deposits of financial institutions increased by approximately QR 5.0 billion. The rate of deposits (customers' deposits + sources of stable funds) amounted 150% at the end of 2018, a high percentage indicating that the bank needs additional sources of funds to be able to grant new funds.
 
• During 2016, the bank issued a QR 1 billion perpetual sukukus eligible as 1^st tier capital. These instruments are not guaranteed and dividends are optional and non-cumulative and payable annually. The profit rate for the first five years is fixed and will be reviewed in case of renewal. The bank has the right not to pay dividends and the holders of the instruments have no right to claim profit on the sukuk. These instruments have no maturity date and are classified as equity.
 
• The board of directors recommended to the General Assembly to be held on 10 March 2019, distributing 40% (dividend 5.72%) of the nominal value of capital as cash dividends for the year 2018, which is similar to the year 2017.
 
• The stock is currently traded at PE multiple of 12.12, and a book value multiple of 1.84 times.