In This Article:
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Net Profit: QAR985 million, up 3.1% from Q1 2024.
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Total Assets: QAR212 billion, increased by 10.2% year-over-year and 5.4% since December 2024.
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Financing Assets: QAR131.8 billion, up 5.7% year-over-year and 5.2% since December 2024.
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Investment Securities: QAR53.3 billion, up 9.3% year-over-year and 1% since December 2024.
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Customer Deposits: QAR133.5 billion, up 8.4% year-over-year and 6.8% since December 2024.
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Financing to Deposit Ratio: 91.4%, below the QCB maximum requirement of 100%.
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Net Operating Income: QAR1.6 billion, up 2% from Q1 2024.
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Total Expenses: QAR268 million, nearly flat compared to QAR263 million in Q1 2024.
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Cost to Income Ratio: 16.6%, the lowest in the Qatari banking sector.
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Non-Performing Financing Assets Ratio: 1.76%.
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Coverage Ratio for Non-Performing Financing Assets: 95%.
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Total Impairment Provisions: QAR357 million, compared to QAR362 million in Q1 2024.
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Stage 2 Coverage Ratio: Improved to 8.5% from 5.4% in March 2024.
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Capital Adequacy Ratio: 21.4%, up from 20.9% in December 2024.
Release Date: April 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Qatar Islamic Bank QPSC (DSMD:QIBK) reported a net profit of QAR985 million for Q1 2025, marking a 3.1% increase compared to Q1 2024.
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Total assets grew by 10.2% year-over-year, reaching QAR212 billion, driven by financing and investing activities.
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Customer deposits increased by 8.4% year-over-year, reaching QAR133.5 billion, supporting strong liquidity with a financing to deposit ratio of 91.4%.
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The bank maintained a low cost-to-income ratio of 16.6%, the lowest in the Qatari banking sector.
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The capital adequacy ratio improved to 21.4%, well above the Basel committee's minimum requirement, reflecting strong capital management.
Negative Points
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Net interest margin (NIM) pressure was noted, with a slight decrease compared to previous quarters, raising concerns about future profitability.
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Fee income growth was sluggish, with a marginal decrease compared to the previous year, partly due to the deconsolidation of QInvest.
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There is uncertainty regarding the impact of new corporate tax regulations, with potential implications for future financial performance.
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Stage 2 loans, while reduced, still represent a significant portion of the portfolio, requiring ongoing risk management.
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The bank's loan growth guidance remains cautious, with potential repayments from the public sector affecting overall growth projections.
Q & A Highlights
Q: Can you provide insights into the strong loan growth this quarter and the outlook for the rest of the year? A: Gourang Hemani, CFO, explained that the loan growth was driven by improved business conditions and increased interest from both public and private sectors. Growth was notably strong in public sector borrowings, private banking, and retail banking. The bank expects this trend to continue, particularly with projects related to the North Field expansion and hydrocarbon capacity expansion in Qatar.