Qatar Islamic Bank (QIBK) Q2 2024 earnings summary

Executive summary

• Net profit attributable to shareholders for H1 2024 reached QAR 2.065 billion, up 5.6% year-over-year; Q2 net profit was QAR 1.1 billion, up 5.7% year-over-year and 16.2% sequentially from Q1 2024.

• Total assets stood at QAR 192.3 billion as of June 2024, up 4.9% year-over-year and 1.7% from December 2023.

• Incorporated in 1982 as Qatar's first Islamic financial institution, holding 36% of listed Islamic banks' assets and ranking second in the country by total assets, financing assets, and net profit.

• Operates 23 branches and over 184 ATMs in Qatar, with selective international presence in the UK, Sudan, and Lebanon.

• Strong government support, robust brand, and ambitious digital transformation initiatives underpin continued growth and profitability.

Financial highlights

• Financing assets grew 6.1% year-over-year to QAR 126.9 billion; customer deposits rose 5.0% to QAR 122.7 billion.

• Investment securities reached QAR 41 billion, up 1.1% from Q1 2024 and 2.7% year-to-date.

• Total income before cost of funding for H1 2024 was QAR 5.7 billion, up from QAR 5.03 billion in H1 2023.

• Net operating income after cost of funding was QAR 3.2 billion, up 4% year-over-year.

• Cost-to-income ratio remained low at 17.7%, among the best in the sector.

Outlook and guidance

• Loan book growth projected at 5%-6% for the full year, with private sector as the main driver.

• NIM expected to remain stable for the rest of the year, with no major changes anticipated.

• Cost of risk expected to be lower in H2 2024 as provisions are typically front-loaded in H1.

• North Field Expansion impact on loan growth expected mainly in 2025.

• Continued focus on digital transformation and operational efficiency to drive future growth.