Qatar First Bank held adjourned EGM

Qatar First Bank L.L.C. (Public) “QFB”, held its adjourned Extraordinary General Meeting (EGM) yesterday to discuss and approve few special resolutions at QFB Lounge premises in Doha – Qatar  with the attendance of QFB’s Board of Directors, chaired by Chairman Sheikh Faisal bin Thani Al Thani, along with shareholders and attendees of the EGM. Upon announcing the quorum by external auditors, the attendees discussed and approved, special matters related to capital reduction, changes in articles of association and raising credit limits for related parties’ transactions.

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

“It was not an easy resolution for the BoD to call shareholders today to approve a capital reduction by 65%. However, we made this resolution to amortize previously accumulated losses to allow us move forward to serve the best interests of QFB shareholders.”

He then added:

“I assure you that the current BoD shall exert its best efforts to put QFB on the right route of growth and profitability. Over the next few months, we shall reveal new products and restructuring exercise that are initial steps to put QFB on the right track again.”

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.

The process will essentially be a balance sheet transaction effected by means of an accounting adjustment all within the “Total Equity” section where the net Equity before and after the proposed Capital Reduction will remain unchanged. The transaction will have no impact on the cash position or financial liquidity of the Bank. Another special resolution was passed approving certain alterations to the articles of association in accordance with the new corporate governance regulations issued by QFMA.

Mr. Ali Mohammed Al-Obaidli, QFB CEO, also commented:

“We will proceed with 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 BoD and management team will definitely boost our performance and accelerate momentum of coming back into the green.”

Key focus areas of the new strategy will include 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 board have decided in favor of adopting a timely strategy that focuses on shifting the bank’s operating model to fee income on investment products. QFB shall also embark into a restructuring exercise to reduce its operational expenditures; further details shall be announced soon in line with QFB newly elected BoD’s endeavors to serve the best interests of QFB shareholders.

QFB announces half-year financials results

Qatar First Bank L.L.C. (Public), a Shari’ah compliant bank based in Qatar and listed on the Qatar Stock Exchange (QSE), has released its financial results for the six-month period ending 30th June 2019 recording a net loss of QAR 301.3 million compared with net loss of QAR 353.9 million for the same period of 2018, as well as total income of QAR 13.8 million, compared with a negative income of QAR 243 million in the same period of 2018.

Mr. Ali Mohammed Al-Obaidly, QFB CEO, said:

“Even though the bank had to announce a loss this quarter, our operations show positive growth momentum. However, it was internally a tough call to make. QFB resolved totally to wash away any previously accumulated losses. Though QFB still has to achieve its growth goals, I believe it is ready now for a fresh start free from any past bad performance burdens. Senior management in line with QFB newly elected BoD shall exert all best efforts to correct QFB trajectory and get it back into the green. I, therefore, appreciate our shareholders and stakeholders patience and trust.”

Fee-based income reached to QAR 15.5 million for the first half of 2019, an increase of 54.4% compared to QAR 10 million for the same period 2018 due to the Bank’s newly implemented business strategy of moving away from asset-based income generation to being a fee income based business. Moreover, our prudent control measures has positively impacted the overall performance in relation to total income.

“Operationally our 2019 financial year started with a positive note, generating a net profit in the first quarter after many continuous quarters of losses.  Our income streams are showing positive signs growth momentum which is a manifest that QFB is progressively and steadily moving forward in the right direction,” he added.

To further fuel our growth business teams are focused to increase the bank’s assets through direct sourcing and structured products using multiple deals along with new financial products and solutions that generate higher returns targeting new and existing clients.

QFB’s shareholders recently elected a robust well diversified new BoD, which consists of prominent economic and business figures who are collectively working to improve the bank financial performance on a well-structured long-term growth plan while looking in to generate positive returns to its shareholders.

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.