Qatar First Bank announces 2019 year-end financial results

    • Q4 recorded a net profit of QAR 1.3 million attributable to equity holders of the bank
    • Fee income increased by 103% to 32.3 million compared to QAR 15.9 million in 2018
    • Bank reduced total expenses by 17.2% compared to 2018

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 2019.

A key highlight for the year was that accumulated losses of QAR 1.3 billion were offset against share capital during the year. As result of offset and performance during the year, the Bank was able to secure positive retained earnings of QAR 2.9 million as at 31 December 2019. Additionally, QFB reported its second consecutive profitable quarter in Q4 with a net profit of QAR 1.3 million attributable to equity holders of the bank. QFB also recorded a growth momentum related to its income streams where fee income increased by 103% to 32.3 million compared to QAR 15.9 million in 2018 largely driven by new structured products introduced during 2019. QFB made continuous gain from its cost rationalization plan implemented in 2017 where bank reduced its total expenses by 17.2% compared to 2018.

Sheikh Faisal bin Thani Al-Thani, QFB Chairman, commented:

“2019 was a key milestone for QFB where three of our quarters ended up generating net profit, and our fee income products showing significant growth with the successful execution of the fee-based-income model. These optimistic signs has helped us to create the turnaround performance in 2019 along with the unending confidence from our shareholders while we are looking forward to a stable growth momentum in 2020”

It is noteworthy that QFB has made a prodigious curtain raiser for 2019 where shareholders elected a robust well-diversified new board of directors consists of prominent economic and business figures that abetting the current transformational shift of QFB. QFB also shifted its operating model to a fee income on structured products.

In line with this new strategy, the bank announced earlier that it has successfully completed the $117 million off-market acquisition of 90 North office campus located in Bellevue, Washington. This acquisition was QFB’s 6th product offerings and 4th in the US real estate market offering investors access to international investment opportunities through Investment Management Platform. It was also a strong testimony of QFB’s key focus on its strategy of offering innovative financial solutions with greater returns to the bank’s clients of high net worth Individuals, institutional investors and government related entities. The product offered an investment in a stable mature market. This investment provided clients with ten years of strong, credit-backed contractual cash flows with minimal capital obligations and a best-in-class asset in a market characterized by large, market-leading companies such as Microsoft, T-Mobile, Nintendo, REI, Amazon, Google, Facebook, Oculus, Costco, AT&T, and Boeing.

QFB also made a successful exit along with its investors through the sale of two Boeing 737-900ER aircrafts, which is its second sharia-compliant aviation deal. The two aircrafts were on a 7-year long-term sharia-compliant lease contract to Indonesia’s Lion Air. Interestingly, this is the first deal of its kind that the bank is undertaking in the field of aviation through the global investment management platform that the bank launched and attracts increased opportunities for its clients and investors. Noteworthy this investment product has achieved for its holders a cash dividend of 9% annually, whereby the profits are distributed every three months, while the internal return on investment of the product is about 12%.

As a contingency measure in order to mitigate any future revaluation risks QFB is continuing to liquidate its private equity portfolio through many successful exits during 2019. Proceeds from these exits will be reinvested in more secure assets across politically stable investment options.

 

Qatar First Bank successfully exits second sharia-compliant aviation deal

  • Structured aviation note recorded cash distributions 9% annually paid on quarter-yearly basis and a total IRR of 12%
  • Ayman Zaidan: The bank will continue to build on this success through offering innovative financial solutions to its clients

Qatar First Bank, the first independent Sharia-compliant bank authorized by the QFC Regulatory Authority (QFCRA) and a listed entity in the Qatar Stock Exchange, has announced the successful exit along with its investors through the sale of two Boeing 737-900ER aircrafts. This comes in line with the bank strategy and directive of offering international co-investment opportunities to its clients and to the Qatari market.

The two aircrafts were on a 7-year long-term sharia-compliant lease contract to Indonesia’s Lion Air. Interestingly, this is the first deal of its kind that the bank is undertaking in the field of aviation through the global investment management platform that the bank launched and attracts increased opportunities for its clients and investors. Noteworthy this investment product has achieved for its holders a cash dividend of 9% annually, whereby the profits are distributed every three months, while the internal return on investment of the product is about 12%.

Commenting on the success of the exit deals, Ayman Zaidan, QFB’s deputy CEO, said:

“We are very pleased to announce the successful exit of these deals further strengthening the bank’s Investment offerings to its clients and solidifying the bank’s strategy and risk-sharing operating model. The bank will continue to build on this success through offering innovative financial solutions and sharia-compliant investments to the Qatari market”

Further it is noteworthy the increasing success of investment structured products offered by the bank to meet the increasing need of its investors looking for innovative investment opportunities. The products of the bank meet with great acceptance from potential investors as it provides investment opportunities in business sectors characterized by relative stability, as they provide attractive and expected returns in the medium and long term, and with a proportionate annual profit rate paid to clients on a quarterly basis.

Earlier the bank announced it has successfully completed the $117 million off-market acquisition of 90 North office campus located in Bellevue, Washington. This acquisition is QFB’s 6th product offerings and 4th in the US real estate market offering investors access to international investment opportunities through Investment Management Platform. It is also a strong testimony of QFB’s key focus on its strategy of offering innovative financial solutions with greater returns to the bank’s clients of high net worth Individuals, institutional investors and government related entities. Additionally, the product offers an investment in a stable mature market. This investment provides clients with ten years of strong, credit-backed contractual cash flows with minimal capital obligations and a best-in-class asset in a market characterized by large, market-leading companies such as Microsoft, T-Mobile, Nintendo, REI, Amazon, Google, Facebook, Oculus, Costco, AT&T, and Boeing.

Qatar First Bank acquires 90 North Corporate Campus located in Seattle Washington for USD117 millions

Qatar First Bank (QFB), the first independent Shari’ah compliant bank authorized by the QFC Regulatory Authority (QFCRA) and a listed entity in the Qatar Stock Exchange, has completed the $117 million off-market acquisition of 90 North, a four-building, 262k-square-foot office campus located in Bellevue, Washington. The property is fully rented by two tenants T-Mobile and Mindtree.

The 90 North Corporate Campus is a four building class “A” campus property situated on approximately 20 acres and strategically located at Seattle, Washington. The campus is ideally located in Eastgate, the heart of the I-90 suburban corridor which provides prime freeway access, proximity to the best executive housing in the region, a strong roster of corporate tenants, and a low vacancy rate. The campus features an on-site food court, café, fitness center, conference facility, courtyard with outdoor seating and recreational activities, and ample surface parking.

This acquisition is QFB’s sixth product offerings and fourth in the US real estate market offering investors access to international investment opportunities through Investment Management Platform. It is also a strong testimony of QFB’s key focus on its strategy of offering innovative financial solutions with greater returns to bank’s clients of high net worth Individuals, institutional investors and government related entities.

Commenting on the acquisition, Mr. Ayman Zaidan, Deputy Chief Executive Officer said:

“In line with our new strategy, we source and structure investment opportunities to cater to the increasing demand of local and international investors. Our products help investors gain access and reach to the US real estate market with unique properties that offers Shariah-compliant investments. Our new strategic direction has reinforced our vision of a risk-sharing collective investment operating business model”

Additionally, the product offers an investment in a stable mature market. This investment provides clients with ten years of strong, credit-backed contractual cash flows with minimal capital obligations and a best-in-class asset in a market characterized by large, market-leading companies such as Microsoft, T-Mobile, Nintendo, REI, Amazon, Google, Facebook, Oculus, Costco, AT&T, and Boeing.

It is worth mentioning that this product is offered on a private placement basis and potential clients are subject to regulatory requirements of QFMA and other regulators to be eligible to participate in such investment opportunity.

Trading of Qatar First Bank (QFB) stock will be suspended on Monday 23/12/2019 to complete capital reduction process

Qatar Stock Exchange (QSE) announces that trading of QFB’s stock will be suspended on Monday 23/12/2019 for a period of one day in order to implement the capital reduction process aimed to extinguish losses encountered by the bank.

However, trading of QFB’s stock will be resumed on Tuesday 24/12/2019.

It is worth noting that the QFB has obtained its EGM’s approval dated 16/9/2019 on reducing the issued capital by 65% from 2 billion Qatari riyals to 700 million Qatari riyals, divided into 700 million shares with a nominal value amounting to QR1 Qatari each.

QFB announced that it has determined the date for capital reduction after obtaining all necessary approvals to implement the capital reduction, and after coordination with the relevant authorities.

Note that the capital equation which will be followed to extinguish the losses is as follows:

New Price = Previous Capital/ New Capital X  closing price

Accordingly, the opening price of the bank’s stock after the capital reduction process will be determined based on the closing price of the bank’s stock at the end of Sunday, 12/22/2019.

The new price will be announced in a market notice to be published on QSE website.

To view the financial position        Click here
To view the Minutes of the EGM   Click here
To view the Creditors Notice           Click here

QFB announces implementing reduction of Paid-Up Capital

QFB announces that it has completed obtaining all the necessary approvals to implement the process of reducing the share capital. These documents include obtaining approval on the amended articles of association by the Qatar Financial Center and an extract of the new commercial register reflecting the new paid-up capital. Accordingly, and upon coordination with the relevant regulatory authorities, QFB will:

1) Implement the process of reducing its paid-up capital to become 700 million Qatari riyals, equivalent to 700 million shares with a nominal value of one Qatari Riyal per share instead of previously 2 billion shares with a nominal value of one Qatari Riyal.

2) The equation for the amendment of the share will be implemented according to the practices of Qatar Stock Exchange, and therefore trading in the stock will be suspended on Monday, December 23, 2019, to implement the reduction process, provided that trading in the stock with its new capital will be resumed on Tuesday, December 24, 2019.

To view the Financial Position After Capital Reduction, click here

To view the QFB Creditors Notice , click here