(The Group Comment) Qatar Islamic Bank Net profit Rises 14.5% to QR 2.75 billion

January 24, 2019

• Qatar Islamic Bank announced its results for 2018, with net profits sitting at QR2.75 billion, compared to QR2.40 billion in 2017, an increase of 14.58%. Dividend amounted to QR10.79 compared to QR 9.31, at the end of 2017, 15.89% increase.


• With regard to the bank's assets, it increased by 1.90% in 2018, compared to 2017, as result mainly of the increase in cash and assets with the central banks, as this item increased by QR1.75 billion or 31.6%, compared to the previous year.


• Reviewing assets, we notice that the financing assets decreased between 2018 and 2017 by QR404 million or 0.39%. Financing assets constitute about 66.75% of the total assets of the bank. Financing assets to customer deposits amounted to 101.60% at the end of 2018, compared to 100.78% at the end of 2017. This resulted in a decrease of 1.19% in customer deposits while financing assets decreased by 0.39%.


• Equity increased by 1.00% to QR 15.42 billion at the end of 2018. The capital adequacy ratio is 18.80%. The book value of the share amounted to QR 65.26 and the return on shareholders' equity for 2018 was 17.31%, compared to 15.73% in 2017.


• At the end of 2018, total income increased to QR 6.90 billion compared to QR 6.20 billion at the end of 2017, an increase of about 11%. This improvement was due to the increase of net income from finance and investment activities, which increased by QR556 million. Net financing and investment revenues account for 87.23% of total income.


• The Board of Directors of the Company recommended to the General Assembly to distribute 50% of the nominal value of the capital as cash dividends for the year 2018, which is the same percentage for the year 2017.


• The stock currently trades at a PE multiple of 13.52, and a book value multiple of 2.35 times.