Qatar Islamic Bank (QIB) shareholders gave their approval for the board of directors’ proposal to distribute QR0.575 per share as cash dividend at the ordinary and extraordinary assembly general meeting held virtually on Tuesday.
Chaired by QIB Chairman Sheikh Jassim bin Hamad bin Jassim bin Jaber Al Thani, the AGM absolved the Board members from liability for the year ended December 31, 2021 and approval of the remuneration prescribed to them.
Addressing the shareholders, Sheikh Jassim said 2021 has been a year of recovery and that the continued fiscal stimulus after the COVID-19 pandemic has led to growth above expectations.
The bank has adopted many precautionary measures to mitigate the impact of the COVID-19 pandemic and protect and support its employees and customers, while ensuring business continuity and financial stability, he said.
“The safety of our employees and customers remains our top priority and therefore in collaboration with the Ministry of Public Health and Hamad Medical Corporation, QIB continues to raise awareness on the importance of following safe practices and being responsible towards the community through its channels.”
QIB has been operating at its full potential thanks to the progress in our digital offerings, with most of our employees working remotely, Sheikh Jassim said.
“We managed to implement a comprehensive campaign to work from home since the beginning of the pandemic, which resulted in an unprecedented reliance on digital channels by existing and new customers. We have also accelerated the launch of new digital products and services on our mobile application and online platforms to ensure business continuity.
“We have introduced mandatory controls to protect our frontline employees, while providing full support to our corporate and retail clients in these times of financial uncertainty, in line with the governmental and Qatar Central Bank’s directives.”
In 2021, he said, QIB maintained and strengthened its leadership in the Qatari banking sector and continued to be the largest Islamic bank and the largest private bank in Qatar.
QIB also continued to focus on its digital transformation programme, which has successfully led to a significant increase in its sales and revenues, he added.
“This success is the result of the wide adoption of our digital offerings by our customers. The bank played a major role in developing and modernizing the banking sector in the country through its innovative digital products and services introduced for the first time in Qatar, whilst being the first Islamic bank to provide a mobile app for its retail and corporate customers and SMEs.”
The bank has invested extensively in its human resources and in developing their skills through the implementation of a comprehensive programme of innovative education and training, in addition to receiving dozens of prestigious awards during this year from well-respected international financial institutions and publications, affirming its position as a leading banking institution in the Middle East, he said.
Amid the significant developments despite the challenges faced last year, he said QIB’s results affirmed its position as one the largest Islamic banks locally and internationally. Its assets increased by 11.2 percent from QR174.4 billion in 2020 to QR193.9 billion in 2021. Customer deposits grew by 11 percent reaching QR131.1 billion compared to QR118.1 billion in 2020. Total income amounted to QR8.1 billion, representing a growth of 2.2 percent over the previous year. Moreover, the bank was able to maintain the ratio of non-performing financing assets to total financing assets around 1.4 percent, one of the lowest in the banking industry. It also continued to pursue a conservative impairment policy, with coverage ratio of the non-performing financing assets reaching 95% as of the end of 2021, in line with Qatar Central Bank’s directives.
QIB’s net profit in 2021 amounted to QR3,555.3 million, a growth rate of 16% compared to 2020. Based on these results, the Board of Directors recommends a cash dividend distribution to shareholders of 57.5% of the nominal share value, at QR0.575 per share.