Qatar Islamic Bank (QIBK) Q1 2025 earnings summary

Executive summary

• Net profit for Q1 2025 reached QAR 985 million, up 3.1% year-over-year, with total assets at QAR 212 billion, a 10.2% increase from Q1 2024 and 5.4% from December 2024.

• The institution is the largest Islamic bank in Qatar and the second largest overall by assets, financing, and net profit, with a strong domestic presence and selective international operations.

• Supported by the Qatar Investment Authority as the largest shareholder, it maintains a robust financial profile, high operating efficiency, and consistent profitability.

• Credit ratings are A1 (Moody's), A (Fitch), and AA- (Capital Intelligence), with a market capitalization of QAR 48.7 billion as of March 31, 2025.

• The interim financial statements received an unqualified review from the independent auditor.

Financial highlights

• Financing assets rose 5.7% year-over-year to QAR 131.8 billion; customer deposits grew 8.4% to QAR 133.5 billion.

• Net operating income after quasi-equity holders was QAR 1.6 billion, up 2% year-over-year.

• Cost-to-income ratio at 16.6%, the lowest in the Qatari banking sector; capital adequacy ratio at 21.4%.

• Provision coverage ratio at 95%; NPF ratio at 1.76% reflects strong asset quality.

• Cash and cash equivalents at period end were QAR 7.47 billion, up from QAR 4.69 billion in Q1 2024.

Outlook and guidance

• NIMs expected to remain flat for 2025 compared to last year, with Q1 NIM at approximately 3%.

• Loan growth guidance maintained at mid-single digits (5%-6%) for the full year, despite strong Q1 growth.

• The institution continues to focus on digital transformation, operational efficiency, and prudent risk management.

• Supported by a stable macroeconomic environment in Qatar, with robust GDP growth and low sovereign indebtedness.

• The Group expects to benefit from new AAOIFI standards effective from 2026, with no immediate impact on current results.