Profits hit by 74 per cent decline in income from investment activities
Qatar Islamic Bank (QIB) has reported net profits of QR1.32bn ($362m) for 2009, a decline of 19.5 per cent compared to the QR1.64bn figure for 2008.
The bank posted profits of QR321m in the fourth quarter, an 18 per cent decline compared to profits of QR392m for the same period a year earlier.
The decline in profits was led by a significant decrease in income from investment activities which recorded a 74 per cent year-on-year drop, from QR1.1bn in 2008 to QR276m in 2009.
QIB was also hit by impairment charges amounting to QR83m, in stark contrast to no impairment charges being made in 2008. Operating expenses also increased by 10 per cent during the year.
Nonetheless, QIB posted higher growth in 2009 than the industry average, with its balance sheet growing by 17.1 per cent compared to the banking sector’s overall asset growth of 16.2 per cent.
The bank’s financing activities expanded by 20 per cent during the year, compared to an 11.5 per cent loan growth for the Qatari banking sector as a whole. QIB’s deposits also showed healthy year-on-year growth of 22.7 per cent, compared with the wider sector’s deposit growth of 16.2 per cent.