QFB reports net profit for the first Quarter

  • QAR 3.2 million net profit
  • 71% increase in revenues

Qatar First Bank L.L.C. (Public) “QFB”, a leading Shari’ah compliant bank based in Qatar, regulated by QFCRA and listed on the Qatar Stock Exchange (QSE), has released its financial results for the three-months period ended 31 March 2019, reporting a net profit of QAR 3.2 million attributable to equity-holders of the bank, compared with a net loss of QAR 47.1 million in the same period of 2018, as well as a 71% increase in revenues of QAR 57.5 million, compared with QAR 33.6 million in the same period of 2018.

Sheikh Faisal bin Thani Al-Thani, new QFB Chairman, said:

“We are glad to see the turnaround performance of the bank by generating a net profit in the first quarter. Positive results are a direct manifest that QFB is back on the right track with a new strategy that executive management has developed and implemented. This is only the start and I am looking to see more over the current financial year.

Board and the executive management team’s efforts fruited these positive results. With the new elected BoD, assisted by the executive team, we will work together to mine new opportunities and avail them for the best interests of QFB shareholders, customers and depositors.”

Key highlights for the current period being a total income growth of 71% compared to the same period of 2018, mainly driven by an increase in fee based income on structured products & investments from QAR 6.5 million to QAR 14.4 million, and increase in net financing income from QAR 3.2 million to QAR 11.9 million. The increase in fee-based income is due to the bank’s newly implemented business strategy of moving away from asset-based income generation to being a fee income based business. The increase in net financing income was mainly driven by a reduction in the costs of funding due to better management of the bank’s loan to deposit ratio and more competitive profit rates offered on deposits.

Bank’s stakeholders are witnessing the results of revised strategy where the bank is undergoing a transformational shift from a proprietary based investment model to having a diversified base of fee-based revenue streams. Align to this new strategy; QFB has already begun generating fee income by offering client-focused investment products, primarily in real estate and aviation.

At the recently concluded bank’s AGM, QFB shareholders have elected a robust well diversified new BoD consists of prominent economic and business figures which will definitely support QFB transactions volume and work to improve the bank financial performance over current financial year.

Qatar First Bank held AGM & EGM

Qatar First Bank L.L.C. (Public) “QFB” held its Annual General Meeting (AGM) and Extraordinary General Meeting (EGM) yesterday to discuss the bank’s performance and future initiatives after releasing its financials for the year ended 31 December 2018 at QFB Lounge premises in Doha – Qatar.

QFB’s Board of Directors, chaired by chairman Abdulla Bin Fahad Bin Ghorab Al Marri, along with shareholders and attendees of the AGM & EGM, discussed and approved, the bank’s audited financial results and the performance of the 2018 full year of operation.

Ten board members were elected by the shareholders through the cumulative voting process in accordance with the applicable rules and regulations. The result of voting was QFB new BoD consists of the following winners: Sheikh Faisal Thani Al Thani, Mr. Abdulla Fahad Ghorab Al Marri, Dr. Mohammed Nasser Mohammed Al Qahtani, Mr. Abdel Latif Mohammed Al Sada, Mr. Salman Abdulghani, Mr. Ibrahim Jaidah, Mr. Mohammed Reslan Al Khayat, Mr. Mohammed Yousef Al Mana and Mr. Salem Al Marri and Mohammed Al Hajiri. The Bank will now seek to fulfill the necessary regulatory and legal arrangements to incorporate the changes of membership in its Board of Directors. Following the Bank’s AGM, the EGM took place at the same venue and passed key resolutions.

Bank’s EGM through shareholders’ approval, adopted a special resolution to approve QFB’s Board of Directors share capital reduction recommendation in accordance with regulatory requirements by the Qatar Financial Markets Authority (QFMA), QFC rules and others applicable laws. The Bank will now seek to fulfill the necessary regulatory and legal arrangements to effect the capital reduction recommendation. Another special resolution was passed approving certain alterations to the articles of association in accordance with the new corporate governance regulations issued by QFMA.

Abdulla Bin Fahad Bin Ghorab Al Marri, QFB’s Chairman, said:

“At QFB we were not immune to the prevailing macro-economic conditions. Record such net loss was mainly driven by global and regional headwinds resulting from prevailing market uncertainties that affected the performance of the bank’s alternative investments portfolio.

We will seek to obtain the required approvals on the proposed capital reduction plan that will play a significant role in our growth. Our outlook is very firm and optimistic. The launch of revised strategy and appointment of new Board of Directors and management team will definitely boost our performance and accelerate momentum of coming back into the green.”

Financial year 2018 being the most challenging year for the bank reporting a net loss of QAR 482 million along with a disposal loss and loss on fair value remeasurement of equity investments of QAR 331 million during the year”

Total income (excluding disposal loss and loss on fair value remeasurement of equity investments) showed a growth momentum with an increase of 24.1% at QAR 222 million, as compared to QAR 178 million of previous year. This was mainly driven by the fee income from the structured products and a reduction of 26% in returns to unrestricted investment account holders (the cost of funding) due to the better management of its loan to deposit ratio.

In 2018, Treasury and Investment Management arm focused more on strengthening product capabilities. Key focus areas included organic growth of the bank’s customer base of high net worth Individuals, institutional investors and government related entities. Furthermore, the team directly acquired several yielding real estate properties in the US and UK while structuring several capital protected structured products.

To achieve sustainable business growth and to turn around financial and business performance, the bank new board and senior management adopting a timely strategy that focuses on shifting the bank’s operating model from asset management to fee income on structured product.

Qatar First Bank announces 2018 year-end financial results

Qatar First Bank L.L.C. (Public) “QFB”, a leading Shari’ah compliant bank based in Qatar, regulated by QFCRA and listed on the Qatar Stock Exchange (QSE), has released its financial results for the year ended 31 December 2018, reporting a net loss of QAR 482 million.

Key highlights for the year being Total Income (excluding disposal loss and loss on fair value remeasurement of equity investments) showed a growth momentum with an increase of 24.1% at QAR 222 million, as compared to QAR 178 million of previous year. This was mainly driven by the fee income from the structured products and a reduction of 26% in returns to unrestricted investment account holders (the cost of funding) due to the better management of its loan to deposit ratio.

QFB’s management continued to raise its efficiency through the implementation of its cost rationalization plan that resulted in reduction of total expenses of the bank by 10%, as compared to the previous year. This was mainly driven by reduction in staff cost by 18% and other operating expenses by 16%.

Treasury and Investment arm has initiated an ambitious plan to continue increasing the assets under management through multiple deal-by-deal transactions and direct sourcing, structuring and placement of these deals. The asset and liability management desk continues its offering of innovative products and solutions to the Qatari Corporate client base while adhering to prudent liquidity management measures that enables the Bank to maintain its cost of funding and generate positive net profit margins.

The Bank also reported a disposal loss and loss on fair value remeasurement of equity investments of QAR 331 million during the year, compared to QAR 119 million in the previous year. This was mainly driven by global and regional headwinds resulting in prevailing market uncertainties that affected the performance of the Bank’s Alternative Investments portfolio.

Despite the challenges faced by the Bank previously, we look forward to the future today with positive considered forecasts. In 2018, the Bank underwent a comprehensive exercise to identify weaknesses and strengths. The exercise revealed internal strategic capabilities that, in private banking and real estate investment that could over a competitive edge that would enhance future returns in search of lucrative business opportunities that would have a positive impact on the Bank’s future growth.

 

QFB Board of Directors appoints Mr. Ali Al-Obaidly as CEO

Qatar First Bank (QFB), the first independent Shari’ah compliant bank authorized by the QFC Regulatory Authority (QFCRA) which is also a listed entity in Qatar Stock Exchange, announced today the appointment of eminent Qatari business and banking figure Mr. Ali Al-Obaidly as its CEO.

The Board welcomed the appointment of Mr. Ali Mohammed Al Obaidli as CEO of the bank in the context of a new board vision aiming to maximize shareholder rights. The Board also praised the new Chief Executive as a nationally recognized cadre who enjoy wide expertise in economic and administrative matters, and the Board is confident that its extensive and in-depth experience will enable it to improve performance and achieve positive results soon.

Commenting on his appointment, Ali Mohammed Al Obaidli, new CEO of QFB, said:

“I thank the Board of Directors for choosing me as QFB’s CEO at this critical stage of the bank’s growth period. I will work with the Board and the executive team over the coming period to formulate a new strategy for the Bank maximizing shareholders’ rights and putting the Bank on a profitable path again”

Then he added:

“I will be developing an investment and operational strategy covering the Bank’s business and investment portfolios, internal processes and organizational structure. This strategy will be presented to the Board of Directors soon for discussion, approval and implementation. The previous situation was a challenge for the Board and shareholders, but we will work together to rectify the process. I’m asking shareholders for support over this transitional and sensitive phase and fruits of their patience will be ripped soon.”

Prior joining QFB, Mr. Ali Al-Obaidly, was the Group CEO of Ezdan Holdings Group, one of the largest real estate developers in Middle East. During his tenure at Ezdan, he embarked several milestone achievements through local & international expansion and growth momentum in Group investments and returns. Mr. Ali being corporate leader with dual experience in local real estate and financial sectors will spearhead QFB executive team over this critical growth period. Over the next few months, he will closely associate with QFB board to develop the Bank strategy, business plan, restructuring of QFB existing investments and setting the new strategic investment directions with the main intention of maximizing shareholders’ return and offering value added investment opportunities and innovative Shariah-compliant financial solutions to the Bank’s client base. The new strategy shall focus on offering a variety of investment products for clients and on making a turnaround in QFB business model to attract local investment cadres and tap into local market opportunities.

Mr. Ali Mohammed Al-Obaidli holds a Bachelor’s Degree in Management and Economics from Qatar University in 1989 and a Master’s degree in Financial Management from the University of Oklahoma in 1995. Over the course of his career and career that has exceeded 29 years, Mr. Ali Mohammed Al Obaidli held several key positions including GCEO of Ezdan Holding Group, Chairman of the Board of Directors of Widam Foodstuff Company, Chairman of the Board of Directors of Nuzul Holding Company, and member of the Board of Directors of Ezdan Holding Group and its Managing Director. He also was a member of the Board of Directors of Barwa Real Estate Company, the Board of Directors of Qatar International Islamic Bank, Al Rayan Bank, Qatar First Bank and some Islamic insurance institutions, including Qatar Islamic Insurance and Al-Daman Insurance Company (Beema). Medical Care (Al Ahli Hospital) and other boards of directors of Gulf companies in various economic sectors. His career was characterized by the presentation of strategic vision that helped these institutions achieve their growth and expansion goals. In addition, Mr. Ali Mohammed Al Obaidli was named the second best executive in the Gulf region for 2017.

QFB announces third quarter financial results

Qatar First Bank L.L.C. (Public), a leading Shari’ah compliant bank based in Qatar and listed on the Qatar Stock Exchange (QSE), has released its financial results for the nine-month period ended 30th September 2018 recording a net loss of QAR 425.5 million.

Mr. Ayman Zaidan, Head of Treasury and Investment Management, said:

After a challenging nine months with global and regional headwinds, QFB recorded a net loss of QAR 425.5 million where prevailing market uncertainties are among the major concerns for the reduction in banks revenue. QFB’s ambitious cost rationalization plan initiated in first half of 2016 continue to generate positive results by reducing staff cost, other operating expenses and finance cost by 29.8%, 12.5% and 9.6% respectively compared to nine-month period in 2017. Furthermore, other income increased mainly due to fair value of shari’ah complaint risk management instruments and fee income from the structured products.

The bank is continuing its programme of creating liquidity from private equity portfolio while working with partners on new opportunities in developed markets that will be seeded and managed by QFB.

Significant progress has been made with the bank’s new strategy evidenced by the exit of its investment in Memorial. Furthermore, the bank is in the discussion process to realize additional exits from investments in English Home and Kuwait Energy following the execution of definitive agreements.

On the other hand, Treasury and Investment management arm is keen on increasing the bank’s assets under management by multiple deal-by-deal transactions through direct sourcing and structuring while ensuring prudent liquidity management measures.

QFB continue to remain prudent on the global investment market conditions and remain focused on its core capabilities & expertise in private equity, real estate and private banking fronts which leads to create more profitable business opportunities to fuel bank’s growth.