Qatar Islamic Bank (QIBK) Q4 2024 earnings summary

Executive summary

• Net profit attributable to shareholders rose 7% year-over-year to QAR 4.605 billion for FY2024, with EPS at QAR 1.86, up from QAR 1.73 in 2023.

• Total assets reached QAR 200.8 billion, growing 6.1% year-over-year, driven by financing and investment activities.

• Board proposed a total cash dividend of QAR 0.8 per share for 2024, a 10.3% increase, subject to regulatory approval.

• Incorporated in 1982 as Qatar's first Islamic financial institution, holding 37% of listed Islamic banks' assets and ranking second in the country by total assets and net profit.

• Recognized for digital transformation, operational efficiency, and consistent profitability.

Financial highlights

• Net funded income grew 3.8% to QAR 5.73 billion; net financing margin stable at 3.6%, overall NIM at 3.1%.

• Net fee and commission income reached QAR 867.4 million; operating expenses contained at QAR 1.14 billion, up 3%.

• Cost-to-income ratio maintained at 17%, the lowest in the Qatari banking sector.

• Customer deposits stood at QAR 125 billion; financing to deposit ratio at 94.5%.

• Net income from financing activities grew to QAR 9,584 million, up 11.7% year-over-year.

Outlook and guidance

• Private sector credit growth expected at 5%-6% for 2025, in line with market.

• NIMs expected to remain stable; cost of risk anticipated to normalize at lower levels barring significant asset quality deterioration.

• Management maintains a positive outlook for Qatar’s economy, expecting robust growth over the next five years, while remaining cautious due to global economic uncertainties and inflation.

• Loan growth in 2025 to be driven by North Field Expansion, services, and industry sectors.

• Tax rate impact uncertain pending final regulations; potential for 15% rate under BEPS Pillar Two.