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

QFB announces net profit for the third Quarter

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), released its financial results for the three-months period ended 30th September 2019. According to the released financials, QFB reported a net profit of QAR 1.54 million attributable to equity holders of the bank, compared with a net loss of QAR 71.6 million in the same period of 2018.

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

“We witness another profitable quarter after generating a net profit in first quarter of 2019 and the outlook is optimistic. It is evident that QFB is harnessing the opportunities created thorough revised strategy where our key priority is sustainable organic growth of the bank’s customer base of HNWIs, institutional investors and government related entities. We have finalized few viable options to further fuel our growth through acquiring several yielding real estate properties in US while structuring several capital protected structured products.”

Bank highlights for the Quarter, an increase of 39% and 19% in both fee income and other income respectively mainly derived through structured products & investments and a reduction of 18% in returns to unrestricted investment account holders (the cost of funding) due to the better management of its loan to deposit ratio as compared with the same period of 2018.

The bank is continuing its strategy on liquidating its proprietary investments; and the significant progress has been made during current nine month period evidenced by the exit of its investments in English Home, Kuwait Energy and, subsequently Future Industries Holding. Furthermore, the bank is in the final stage of completing its exit from its investments in Food Services Company.

During October 2019, QFB announced the successful exit of its 71.3% stake in the Future Industries Holding. QFB’s stake was sold to Toppan Gravity in line with the Bank’s strategy for monetizing its private equity portfolio and reinvesting in more secure assets across politically stable jurisdictions. QFB was able to generate net proceeds of ~US$ 22m from the disposal.

QFB’s Deputy CEO, Ayman Zaidan, commented

“QFB had owned this asset for more than 10 years. As part of our commitment to the shareholders, we have been exploring liquidity options for all the Bank’s investments. I am optimistic with the outcome of this exit as it demonstrates that our new strategy is achievable. I look forward towards future collaboration with Toppan new projects”.

Newly appointed board of directors has embarked in a promising journey on bank’s transformational shift align with its revised strategy in shifting its revenue streams on a more prudent measure of fee-based revenue. As an endorsement, QFB has already begun generating fee income by offering client-focused investment products, primarily in real estate and aviation.

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.

 

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.

QFB announces half year 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 six-month period ending 30th June 2018 recording a net loss of QAR 354 million.

Ayman Zaidan, Head of Treasury and Investment Management said:

Year 2018 is showing a positive growth momentum for the overall banking and finance sector compared to the previous year but the regional landscape still continues to be challenging for most of the investment banks on regional and international level. Given these conditions QFB recorded a net loss of QAR 354 million during the first half of 2018. QFB’s ambitious cost rationalization plan that we implemented starting from the first half of 2016 continue to generate positive results by significantly reducing both staff cost and other operating expenses by 34% and 17% respectively compared to the same period in 2017 which supports our purpose of raising bank’s efficiency level”.

QFB recorded unrealized losses associated with the value of its proprietary investment portfolio. These losses are mainly driven by Turkish assets and worsening macroeconomic conditions. However, in line with the Bank’s new strategy, it is currently actively exploring avenues of exit to dispose some of its assets with the proceeds earmarked for the development and expansion of the bank’s new product offering.

In an ambitious drive by our Treasury and Investment arm through direct sourcing and structuring is striving to increase the bank’s assets under management by multiple deal by deal transactions. Treasury team is also working around the clock in developing timely financial products and solutions targeting new and existing clients prioritising the prudent liquidity management measures which will lead the bank to generate positive net profit margins.

We envision that regional economies will remain showing mix signals, however we will continue to push ahead with our expansion strategy into banking and adopt an opportunistic outlook to source viable investment opportunities and generate sound returns for our clients and shareholders.

Qatar First Bank announces that one of its subsidiaries has signed a conditional sale contract to sell its full stake at memorial company

One of the Bank’s subsidiaries has signed a conditional sale agreement to sell its full stake of 20% in İstanbul Memorial Sağlık Yatırımları A.Ş. (“Memorial”) which is incorporated in Turkey to a company wholly owned by the Aydin Family.

Subject to the fulfillment of all conditions and the receipt of all approvals and prior to completion of the transaction, the Bank will notify the Qatar Exchange with all details of the transaction.

Please note that the deal amount does not represent more than 10% of the total assets of the Bank. It is expected that the deal will close in the third quarter of 2018. It is worth noting that the closing of this deal cannot be guaranteed given that this is subject to obtaining all the required approvals.

Qatar First Bank announces that one of its subsidiaries has signed a conditional sale contract to sell its full stake at English home company

One of the Bank’s subsidiaries has signed a conditional sale agreement to sell its full stake of 40% in EHM MAGAZACILIK SAN. VE TİC. A.Ş (“English Home”) which is incorporated in Turkey to a company wholly owned by the Aydin Family.

Subject to the fulfillment of all conditions and the receipt of all approvals and prior to completion of the transaction, the Bank will notify the Qatar Exchange with all details of the transaction.

Please note that the deal amount does not represent more than 10% of the total assets of the Bank. It is expected that the deal will close in the fourth quarter of 2018. It is worth noting that the closing of this deal cannot be guaranteed given that this is subject to obtaining all the required approvals.

QFB announces first quarter 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 first quarter of 2018 recording revenues of QAR 92.3 million.

Ayman Zaidan, Head of Treasury and Investment Management said:

“Despite the challenging macroeconomic landscape that we faced in 2017, first few months of 2018 seems to be showing a positive growth momentum for the banking and financial sector. Given the condition QFB was able to generate a revenue of QAR 92.3 million and recorded a loss of QAR 28.6 million. Our cost rationalization plan that we implemented in 2017, for the purpose of raising efficiency is generating positive results where there is significant reduction in both staff cost and other operating expenses, 28.8% and 29.4% respectively compared to the same period of 2017.”

QFB has made progress towards its 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. On the back of this new strategy, QFB has already begun generating fee income by offering client-focused investment products, primarily in real estate and aviation.

QFB total assets slightly decreased by 2.7% compared to year end 2017, and closed at QAR 4.8billion. While Bank’s income from both financing assets and placement with financials institution generated a steady income of QAR 20.2 million and QAR 6.2 million respectively.

Treasury and Investment front has fuelled an ambitious plan to continue increasing the assets under management through multiple deal by deal transactions.  This will be accomplished by the direct sourcing, structuring and placing of these deals. While the asset and liability management desk continued to offer 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.

Qatar First Bank held AGM/ EGM

Qatar First Bank L.L.C. (Public) “QFB” held its Annual General Meeting (AGM) today to discuss the bank’s results and future outlook after releasing financials for the year ended 31 December 2017 at QFB Lounge premises in Doha – Qatar.

QFB’s Board of Directors, chaired by QFB chairman Abdulla Bin Fahad Bin Ghorab Al Marri, along with shareholders, Management team and attendees of the AGM, discussed and approved, the bank’s audited financial results and the performance for the previous year. Furthermore, the corporate governance report was presented at the AGM. The EGM was postponed to a date to be announced, to allow a sufficient number of shareholders to approve the proposed Special Resolutions.

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

“2017 was a challenging year for all financial institutions in the country, amid the ongoing illegal blockade imposed on Qatar by some neighbouring GCC countries, which impeded the flow of business both locally and regionally. Qatar’s economy, however, has proven its resiliency and robustness as it swiftly recovered from the effects of this blockade, and continues to do so.

At QFB we are not immune to the prevailing global and regional economic environment. In 2017 the bank recorded a revenue of QAR 334.2 million and a net loss of QAR 269.3 million, resulting mainly from the downward revision of the valuations of some of the bank’s private equity investments across several markets”

QFB was able to complete some successful exits, resulting in a gain of QAR 24 million, and bank’s investment portfolio continued to generate healthy dividends (QAR 25.5 million), which was double that generated in 2016. Bank’s income from financing assets increased by QAR 12.6 million, to QAR 82 million while bank’s income from placement with financial institutions stood at QAR 25.6 million mainly derived from cash deployment in Shari’ah compliant money market funds.

Furthermore, QFB’s management continued raising efficiency levels through the implementation of the cost rationalization plan that resulted in a reduction of the staff expenses by 10.8% and other operating expenses by 20.7% with an overall reduction of the expenses by 7.8% compared to 2016.

QFB has also successfully completed the full exit of Westbourne House and Amanat Holdings as well as the partial exit of Avivo Group and Lion Air at favorable returns to our shareholders. In line with bank’s new strategy, QFB continues to explore exit opportunities to realise value from our private equity investments and gradually move to a less capital-intensive business model.

Many of Bank’s portfolio companies have performed well in 2017. David Morris has successfully continued its expansion, opening new boutiques in Paris and Doha, with further expansion expected in 2018. Cambridge Medical & Rehabilitation Centre grew its revenues by 39% and increased its profitability. Some other companies witnessed less favorable results in 2017, amid the backdrop of macroeconomic developments that have a direct impact on their financial performance.

 

Al Marri continued

“Despite the challenging macroeconomic landscape that we have faced in 2017, QFB has made progress towards its revised strategy. QFB is undergoing a transformational shift from a proprietary based investment model to having a diversified base of fee-based revenue streams. On the back of this new strategy, QFB has already begun generating fee income by offering client-focused investment products, primarily in real estate and aviation”

During the year, new Qatari appointments were made to the Bank’s senior management in line with QFB’s new human resources strategy, to promote and attract Qatari talents to work in QFB while building a sustainable work environment that attracts a national workforce. QFB also continued its action plan that focuses on optimizing the bank’s resources and raising efficiency level by implementing strict cost-cutting measures.

Al Marri concluded by expressing his sincere appreciation and gratitude for the visionary leadership of His Highness, the Emir, Sheikh Tamim Bin Hamad Al Thani. He continued by thanking the shareholders, regulators and investment partners for their continued loyalty, patience, faith and support and respected Shari’ah Supervisory Board for their wise counsel and guidance.

Qatar First Bank announces 2017 year-end financial results

Qatar First Bank L.L.C. (Public) “QFB”, a leading Shari’ah compliant bank based in Qatar and listed on the Qatar Stock Exchange (QSE), has released its financial results for the year ended 31 December 2017.

QFB investment portfolio continued to generate healthy dividends (QAR 25.5 million) which constitute double the income generated in 2016. furthermore, the bank’s income from financing assets increased by 18.3%, compared to 2016, recording an additional income of QAR 12.6 million and the financing assets will generate recurring income during the coming years. Also, the bank’s income from placement with financial institutions stood at QAR 25.6 million mainly derived from cash deployment in Shari’ah compliant money market funds. QFB recorded a revenue of QAR 334.2 million and a net loss of QAR 269.3 million for the year-end 2017 resulting mainly from the downward revision of the valuations of some of the Bank’s investments across several markets.

Moreover, the bank sold its stake in Amanat Holding, a Dubai based-listed healthcare and education company and generated overall cash returns of QAR 25.6 million.

In line with the results and the changes instituted during 2017, QFB’s management continued raising efficiency levels through the implementation of the cost rationalization plan that resulted in a reduction of the staff expenses by 10.8% and other operating expenses by 20.7% with an overall reduction of the expenses by 7.8% compared to 2016. The expenses expected to be reduced further in coming years as it will have full year impacts of the cost initiatives measures.

Ayman Zaidan, Head of Treasury & Investment Management, said: “We continue on rerouting and fully matching QFB with the evolution of Qatar and the wider region’s investment direction to access lucrative investment opportunities.”

Whilst the current volatility in the global markets has impacted the bank’s business, QFB continued to successfully manage its existing portfolio, as well as seeking out new lucrative opportunities. The management is confident that they will perform well in the years to come.

He further added: “QFB’s strategy focuses on our role as a trusted advisor, a gateway for investors who wish to tap into innovative, Shari’ah compliant, investment opportunities in local, regional and global markets. We will continue to diversify our portfolio, tapping into new and attractive geographical markets. We are well positioned to provide capital solutions to growing businesses in the region, utilizing our expertise and network. We look to partner with market leaders, private and institutional investors, attracting third party money with the objective to create value while following international best practices and the highest levels of corporate governance.”

Over the previous year, QFB has leveraged on the in-house and international breadth of investment solutions and structuring capabilities to offer an attractive range of products and services. The bank announced the placement of the ‘Ijarah Aviation Structured Product’ that was met with great enthusiasm by individual and institutional clients. Additionally, the bank’s team of professionals catered clients with a wide range of investment opportunities and innovative financial solutions to grow, manage and protect their wealth and assets.

Besides, QFB, after the completion of its second residential project in London, announced offering specialised real estate services to individuals and corporates seeking to add value to their portfolios by owning, occupying and investing in real estate across the world. The bank also continued to focus on liquidity optimization through the interbank market and money markets. Also, the team was actively involved in investing and managing the Sukuk book which continued to perform well and growing its private equity deal pipeline.

QFB announces third quarter financial results

  • Recording revenues of QAR 271.89 million;
  • Reduction of overall expenses by 16%;
  • Recording a total assets of QAR 5.54 billion

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 2017 recording revenues of QAR 271.89 million and a loss of QAR 139.6 million.

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

“As predicted, the past nine months were very challenging; as the global and regional investment market continues to face major difficulties. However, QFB recorded a revenue of QAR 271.89 million and a loss of QAR 139.6 million. QFB will continue its endeavours to engineer financial solutions and products for our local individual and institutional clients.”

These challenging global and regional economic factors that continue to have negative influence on the Bank’s investment book led the Bank to record a loss of QAR 40.79 million on revaluation of investment at fair value through net income for nine-month period ended 30 September. On the other hand, the investment portfolio continued to generate healthy cash dividends recording an income of QAR 17.64 million.

On private bank front, QFB’s Sukuk book also continued to generate positive returns resulted in an income of QAR 17.92 million. Furthermore, the Bank’s income from placement with financial institutions stood at QAR 20.42 million. Additionally, the Bank’s income from financing assets increased by 21%, compared to the same period of 2016, recording additional income of QAR 10.75 million.

QFB total assets slightly decreased by 7% from the year end, and closed at QAR 5.54 billion. However, despite this fact, on the private bank front, QFB was able to increase its financing assets by net QAR 81.43 million during nine-month period ended 30 September 2017 and was able to structure Real Estate products in the USA and UK for its clients.

With regards to Memorial Healthcare Group, one of Turkey’s largest premier hospital chain, is a leading healthcare chain in Turkey with a network of ten hospitals and three medical clinics. Memorial was established with the mission of becoming a world-class brand in healthcare by pioneering practices in the sector, hiring distinguished staff, complying with international quality standards and serving patients with a satisfaction-oriented approach. In 2016, the Group employed over 770 doctors and served approximately 2 million patients. Its revenue in 2016 were TRL907 million.

Mr. Sulaiman Al-Hashimi, Chief Business Officer, said:

“QFB optimisation of existing investment portfolio book continues with the objective of maximizing value to shareholders & clients. Along with our capabilities and expertise in private equity, real estate and private banking fronts we can create more profitable business opportunities to fuel our growth”

QFB announces first half results

– Recording revenues of QAR 185 million
– Reduction of overall expenses by 19.4%
– Deposit base totalled QAR 2.8 billion

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 6-month period ended 30th June 2017 recording revenues of QAR 185 million and a loss of QAR 76.7 million.

Mr. Ayman Zaidan, Head of Treasury and Investment Management, said:
“As the global investment market continues to go through major challenges, QFB recorded revenues of QAR 185 million and a loss of QAR 76.7 million. We envision that the global economic backdrop will remain challenging for the remainder of this year; however, we will continue to push ahead to develop innovative financial solutions and products for our individual and institutional clients.”

Despite these challenging economic factors that continue to have influence on the bank’s investment book, QFB total assets slightly decreased by 5.5% from the year end, and closed at QAR 5.6 billion. Moreover, the investment portfolio continued to generate healthy dividends recording an income of QAR 7.5 million. QFB’s Sukuk book also continued to generate positive returns resulted in an income of QAR 13.6 million which is close to the same period of 2016. Furthermore, the bank’s income from placement with financial institutions has increased by 24%, compared to the first half of same period, mainly from cash deployment in Shari’ah compliant money market funds. Additionally, the bank’s income from financing assets increased by 28.3%, compared to the same period of 2016, recording additional income of QAR 9.0 million.

In line with the results and the changes instituted during 2017, QFB’s management continued raising efficiency levels through the implementation of the cost rationalisation plan that resulted in a reduction of the expenses by 19.4% compared to same period of 2016.

On the private equity front, QFB’s investments in the healthcare sector has shown positive momentum during first half of 2017. With regards to Memorial Healthcare Group, one of Turkey’s largest premier hospital chain, healthy growth has been achieved on both the revenue and EBITDA levels and benefiting from a relatively stable currency fluctuation. QFB’s Turkish and UK investments, which were previously impacted by currency fluctuations and country-specific events, continued to be stable with slight improvements on the UK side. The team will continue to successfully manage the existing portfolio, as well as seeking out new lucrative opportunities. Besides, the management hopes that the portfolio will perform well in the years to come.

On the private bank front, despite economic challenges QFB increased financing assets by 3% compared to year end 2016 and has formed a stable deposit base which stood at QAR 2.8 billion.

Mr. Sulaiman Al-Hashimi, Chief Business Officer, said: “In line with our strategy, QFB will continue to optimise the existing investment portfolio book with the objective of maximizing value to shareholders and clients; to reinvest the proceeds in lucrative opportunities that will contribute positively to the bank’s returns.”

He concluded: “Looking ahead we envision that the global economic backdrop will remain challenging. In spite of these challenges we will continue adopting an opportunistic outlook to source viable investment opportunities that surface in such market conditions in order to generate sound returns for the Bank, our clients and shareholders.”

QFB installs Tamim Almajid mural

In a show of loyalty, support and solidarity with His Highness the Emir, Sheikh Tamim bin Hamad Al-Thani, the wise leadership and the people of Qatar, Qatar First Bank L.L.C. (Public), a leading Shari’ah compliant bank based in Qatar and listed on the Qatar Stock Exchange (QSE), installed “Tamim Almajd” mural.

At a signing ceremony led by QFB’s chairman and members of the board of directors, executive management and bank staff collectively signed the board and wrote messages expressing their support and lining behind His Highness the Emir and the nation.

On the ceremony, Mr. Chairman, Abdullah Al-marri, said: “We are proud of our national identity, and we back our wise leadership. In installation of Tamim Almajid mural, we symbolically express our loyalty and allegiance to Qatar. Today, we renew our pledge to continue efforts towards achieving Qatar’s goals in line with Qatar National Vision 2030.”

Along with senior and executive management, all bank staff gathered to sign the mural placed on QFB Lounge at QFB Bldg and the lounge will remain open over the coming days for all visitors and citizens wishing to sign on the mural.

New Qatari Appointments in QFB Senior Management

  • Al-Khoori: “Unleashing potentials of local talents will enable QFB to best benefit from local market opportunities and contribute to Qatar Vision 2030.”
  • Al-Sahli: “Glad about this appointment and looking to best assist QFB clients and investors.”

Qatar First Bank L.L.C. (Public), a leading Shari’ah compliant bank based in Qatar and listed on the Qatar Stock Exchange (QSE), announced new appointments in senior management. Appointments come in line with Khalid Al-Khoori’s new human resources strategy to promote and attract Qatari talents to work in QFB. QFB is keen to build a sustainable work environment that attracts national workforce.

New appointments come as part of human resources restructuring drill to best fit QFB new sustainable business model, and to best benefit from local, regional and global economic circumstances.

Commenting on this occasion, Al-Khoori – QFB Acting CEO, said: “QFB is re-aligning its human resources to be well-positioned to attract unique lucrative investment opportunities locally, regionally and globally. Unleashing potentials of local talents will enable QFB to best benefit from local market opportunities and contribute to Qatar Vision 2030.

Among the new appointments in senior management, three Qatari financial sector talents were appointed to fill senior position vacancies: Sulaiman Al-Salhi appointed Chief Business Officer, Mohammed Al Sahli appointed Head of Corporate Services, and Sara Ali Al-Adba as Acting Head of Human Resources.

Sulaiman Al-Salhi has 24 years of global financial services experience in both, the conventional and Islamic sectors. Over the years, he has acquired considerable expertise in private banking, investment banking, corporate lending and Islamic finance. Prior to joining QFB, Sulaiman was Managing Director and Senior Executive Officer at Bank Sarasin-Alpen (Qatar) LLC. In this role, he headed the private banking team and successfully led the organization through its challenging start-up phase in Qatar. Within three years, the bank established a strong foothold in the country’s private banking sector.

Sulaiman’s success builds upon two decades of experience, which enabled him to assume Head of HSBC-Amanah Islamic finance. During his time with HSBC, Sulaiman was credited with instituting the Amanah Personal Banking, and Corporate and Investment Banking arms of the business.

Mohammed Al-Sahli has joined QFB in 2011 as Head of Investor Relations to establish and manage QFB Investor Relations Department. In 2013, Al-Sahli brought Corporate Communications under his umbrella. In 2015, proven to be a Qatari talent that embodies QFB vision in attracting and keeping Qatari talents, he was appointed Director of Private Banking to bridge and synchronize private banking activities with QFB investor-client database. Today Al-Sahli promoted to Head of Corporate Services, which includes Marketing, Corporate Communications, Investor Relations, and Administration.

Al-Sahli commented: “Since I joined QFB in 2011, I found QFB Board of Directors very sincere in attracting and developing Qatari talents. Today, I can see executive management determined to reflect BoD’s vision towards support of local talents in assuming senior positions appropriate to their skills and spectrum of experience.

Prior to joining QFB, Al-Sahli worked as corporate communication and investor relation manager in Barwa Real Estate. In this capacity, he had to organize launching events of many subsidiaries, witness Barwa mergers and acquisitions. Ahead of joining Barwa, Al-Sahli assumed the position of investment manager at General Authority for Minor Affairs, a position in which he showed remarkable results and fostered his track-record through managing real estate and stock portfolios.

Al-Sahli added: “In my new role, I’m looking forward to best assist QFB clients and investors. I will also do my best to contribute to achieving QFB strategic objectives.

Sara Al-Adba joined QFB after working as compensation manager at Ooredoo Qatar. Sara has performed well in evaluating effective compensation programs, analyzing competitive compensation practices, recommending appropriate course corrections to senior management, and proposing development and training programs. She also participated in developing compensation strategy.

Upon joining QFB in 2014, Sara was appointed as Senior HR Manager. In her capacity, Sara worked on aligning QFB human resources to QFB business plans and needs. She also developed succession planning programs; today she is promoted to assume position of Acting Head of Human Resources to

Al-Khoori added: “In QFB, I’m keen to create a sustainable work and business environment that is able to attract and develop local talents to play a bigger role in Qatar financial sector; therefore, these appointments come as first step in our strategic direction towards enriching QFB work environment by skillful Qatari employees. Also, we welcome highly qualified Qataris to join QFB, and offer internships and training programs to Qatari graduates that will help them better understand work environment in banking sector.

QFB announces first quarter results

• Recorded revenue of QAR 121.5 million;
• Slightly decreased total assets by 3% to QAR 5.8 billion, compared to year end 2016
• Compared to the same period of the previous year, QFB:
o Improved profitability by 51%; and
o Reduced expenses by 13%

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 first quarter of 2017 recording revenues of QAR 121.5 million and improved profitability by 51%.

Mr. Khaled Abdullah Al Khoori, Acting Chief Executive Officer, QFB said:
“As the global investment market continues to go through major challenges, QFB was able to record revenues of QAR 121.5 million and improved profitability by 51% from a loss of QAR 19.6 million (during the first quarter of 2016) to a loss of QAR 9.6 million (for the same period this year). We envision that the global economic backdrop will remain challenging for the remainder of this year; however, we will continue to push ahead to develop innovative financial solutions and source attractive investment opportunities for our individual and institutional clients.”

Since the beginning of 2017, QFB has been witnessing solid achievements marked by the development of the placement and distribution force that will focus on offering personalized investment opportunities and financial solutions to both individual and corporate clients. To support this initiative, the bank has signed several agreements with internationally recognized players expanding the range of offerings to meet the changing needs of clients across several markets.

Al Khoori added: “The year 2016 saw several key economic events that contributed to the stagnation of the global economy. The depreciation of major currencies, the plunge in oil prices, and the many country-specific macroeconomic and extraordinary factors; have all furthered the slowdown of the global economy. At QFB we were not immune to the prevailing global economic scene.”

Despite these challenging economic factors that continue to have influence on the bank’s investment book, QFB total assets slightly decreased by 3% from the year end 2016, and closed at QAR 5.8 billion. Moreover, the investment portfolio continued to generate healthy dividends recording an increase of 14% compared to the first quarter of 2016. QFB’s Sukuk book also continued to generate positive returns resulted in an increase of 14% compared the same period of 2016. Furthermore, the bank’s income from placement with financial institutions has increased by 46%, compared to the first quarter of the previous year, mainly from cash deployment in Shari’ah compliant money market funds. Additionally, the bank’s income from financing assets increased by 42%, compared to the same period of 2016, recording additional income of QAR 6 million.

On the private equity front, QFB’s investments in the healthcare sector has shown positive momentum during the first quarter of 2017. With regards to Memorial Healthcare Group, one of Turkey’s largest premier hospital chain, healthy growth has been achieved on both the revenue and EBITDA levels, both growing by 10% from the same period of the previous year, and benefiting from a relatively stable currency fluctuation. As for QFB’s investment in Cambridge Medical and Rehabilitation Center in the UAE, significant growth was achieved with revenue growing more than 40%, compared to the same period of the previous year, on the back of the repeal of the 20% co-payment mandate for inpatient Long Term Care in late January 2017, in addition to the continued expansion in services and locations, both locally and regionally. During the same quarter, the Bank sold the final two apartments on its development in Westbourne Grove, London.

QFB’s Turkish and UK investments, which were previously impacted by currency fluctuations and country-specific events, continued to be stable with slight improvements on the UK side. The team will continue to successfully manage the existing portfolio, as well as seeking out new lucrative opportunities. Besides, the management hopes that the portfolio will perform well in the years to come.

Al Khoori said: “In line with our strategy, QFB will continue to optimise the existing investment portfolio book with the objective of maximizing value to shareholders and clients; and to reinvest the proceeds in lucrative opportunities that will contribute positively to the bank’s returns.”

QFB’s current portfolio of alternative investments are within various sectors including healthcare, energy, consumer finance, real estate, industrial, retail, luxury, food & beverage; spread across diversified geographies. Since its incorporation, the bank has closed a number of successful transactions across Qatar, Turkey, the United Kingdom, Africa and the MENA region with carrying value of total equity investments (including subsidiaries) of QAR 1.49 billion (31 March 2017); decreased from the year end 2016 mainly due to successful exits during the first quarter of 2017. Over the years, the team has successfully exited seven investments in addition to two partial exits – the latest of which is selling 44% stake in one of the most successful leading healthcare platforms based in the UAE – and all together generated healthy returns to Shareholders with an average IRR of more than 30%.

On the treasury and investments front, the team continued to focus on the bank’s role as a trusted advisor, a gateway for investors who wish to tap into innovative, Shari’ah compliant, investment opportunities in local, regional and global markets. Leveraging the in-house and international breadth of investment solutions and structuring capabilities, presented by the successful placement of the Ijarah Aviation product, QFB will continue developing innovative Shari’ah compliant structured solutions that will meet individual and corporate clients’ needs.

Alongside the development of attractive products, the treasury and investments team continued to focus on liquidity optimization through the interbank market and money markets. Additionally, the team was actively involved in investing and managing the bank’s Sukuk book which continued to grow and perform well. The department will continue to grow and develop its capabilities with a concentration on developing in-house products during next year and offer attractive products linked to several sectors including Real Estate and Aviation.

On the placement and distribution front, the team will continue offering our range of personalised financial solutions and innovative investment opportunities focusing on profit generation and recurring income channels. During the first quarter of this year, the team has been able to maintain a growing portfolio through offering financing products and liability solutions including Wakala, Murabaha, Ijara, Istisna’a and others. Additionally, the team successfully added a new revenue stream by placing investment products with their corporate clients; demonstrating the synergies between departments – a hallmark to QFB’s strategy. Empowered by our client centric approach where the investment advice is personalized to the financial goals and risk profile of both individual and corporate clients, the placement and distribution team has signed several agreements with internationally recognized players expanding its range of offerings to cover financing, investments, trusts, foundations, advisory, real estate planning, and statement consolidation. The team has increased its booking business, expanded its services across major cities in the region, and solidified relationships with existing clients.

In line with the results and the changes instituted during 2017, QFB’s management continued raising efficiency levels through the implementation of the cost rationalisation plan that resulted in an overall reduction of expenses by 13% compared to the first quarter of 2016. The aim is to focus on capitalizing on the bank’s resources and maximizing the experience of the human capital to boost performance during 2017 and the coming years. Moreover, the efficiency action plan will enable accelerating the focus on business lines that are expected to generate income, and hence raise shareholders’ value and enhance profitability levels.

“2016 was a difficult and challenging year, and the first quarter of 2017 continued to be challenging. However, the changes instituted, in relation to strategy and efficiency, are the necessary steps in laying the foundations for a successful future. We recognize that there is still a considerable amount of work to be done, but we take comfort in the prospect of new business opportunities after refocusing our efforts on income generating business lines. In particular, the combination of our capabilities in private equity, real estate, and product structuring solutions; with dedicated origination and placement capacity; will create a business model that we hope to produce genuine growth and profitability.” Al Khoori added

Al Khoori concluded: “Looking ahead we envision that the global economic backdrop will remain challenging. In spite of these challenges we will continue adopting an opportunistic outlook to source viable investment opportunities that surface in such market conditions in order to generate sound returns for the Bank, our clients and shareholders.”