QFB announces half-year 2020 financial results

• Efficient risk management framework and cautious liquidity measures aided QFB to successfully upheld macro-economic challenges
• QFB applauds the strength and security that Qatari economy provided to the banking sector

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 released its interim condensed consolidated half-year financial statements for the period ended 30 June 2020. QFB reduced its net loss by 35% recording a net loss of QAR 202 million for the first half of 2020 compared with a net loss of QAR 310 million for the same period last year.

Net loss was incurred mainly due to COVID-19 impact on the performance of Bank’s assets. QFB continued implementing a cost rationalization initiative to decrease its total costs, alongside implementing a risk-adjusted income-generating strategy to enhance its returns and shareholder value. As a result, the total costs (excluding one-off impairment costs) were reduced by 27% during the first half of this year compared to the same period last year.

QFB’s Board of Directors, commented
“As the COVID-19 global pandemic effected all industries around the world, the overall banking industry in Qatar witnessed a mild weakening effect on profitability due to the market slowdown. QFB’s efficient risk management framework and cautious liquidity measures ensured that there is only minor impact to its core banking activities. We affirm that QFB is gaining benefits from its revised strategy where our income streams are showing continuous growth momentum along with progressive operational performance and positive financial indicators. We further applaud the effort taken by government and regulators to ensure strength and security of the local economy”

Earlier in January, QFB acquired 90 North Corporate Campus a four-building, 262k-square-foot office campus located in Bellevue, Washington, US. The Bank has also existed a second aviation deal through the sale of a Boeing 737-900ER aircraft.

QFB continues to gain from its revised strategy shifting the Bank’s operating model to focus on investing in risk-adjusted yield-generating structured investment products syndicated to the Bank’s investor-base. In addition, the Bank continues its precautionary measure to address possible risks associated with changing market conditions and create adaptive strategies.

QFB Board of Directors appoints Mr. Abdulrahman Totonji as ACEO

Qatar First Bank (QFB), the first independent Shari’ah compliant bank authorized by the QFC Regulatory Authority (QFCRA), announced today the appointment of a new Acting CEO (ACEO).

Mr. Abdulrahman Totonji is a distinguished talent in business, economics, and investments. He has extensive experience in managing local and international real estate investments, which enables him to lead QFB during this critical moment of its history. He spent around six years managing a billion-QAR Qatari investment portfolio. Additionally, he gained experience over a period of six years investing in the US real estate market. Abdulrahman obtained his master’s degree in real estate finance from Georgetown University, Washington DC and Bachelor’s degree in business administration from George Washington University.

The Board welcomed the appointment of Mr. Totonji as ACEO of the Bank in the context of its new vision aiming at maximizing shareholder value. The Board also praised Abdulrahman’s expertise in economics and administrative matters, and the Board is confident that his experience will help improve the Bank’s performance and achieve positive results for the shareholders.

Commenting on his appointment as new ACEO of QFB, Abdulrahman said:

“I thank the Board of Directors for trusting me as QFB’s ACEO at this critical stage. I will work with the Board and the executive team over the coming period to support the Bank in maximizing shareholders’ value and to place the Bank on a profitable path again, and inshallah we will see the bank grow to new heights.”

QFB discloses first quarter financials

  • Total income also increased by 7% to QAR 34.2 million as compared with the same period of 2019.
  • Total expenses were decreased by 15% to QAR 22.9 million compared to same period of 2019.
  • Income from structured products has increased by 27% as compared with the same period of 2019.
  • C0onservative provisions amounted to QAR 203.9 million
  • Aside from COVID-19 negative impact, a profit of QAR 12.3 million attributable to equity holders of the bank was recorded compared with a net profit of QAR 3.2 million of the same period of 2019.

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 31 March 2020. This disclosure comes amid the current unprecedented conditions of the COVID-19 virus crisis, which has shown a negative impact on the financial results of many sectors and companies around the world, especially the financial and banking sector.

The bank core business, aside from COVID-19 negative impact, recorded a profit of QAR 12.3 million attributable to equity holders of the bank compared with a net profit of QAR 3.2 million of the same period of 2019.  However, in line with the accounting standards and best practices in place by regional and international banks, and in view of the global macroeconomic conditions, one-time reserve provisions have been made in order to confront the risks of the COVID-19 crisis. This resulted in a recoded net loss of QAR 191.6 million arising from making these COVID-19 conservative provisions, which amounted to QAR 203.9 million.

Additionally, in line with Bank’s adopted strategy on cost efficiency, total expenses were decreased by 15% to QAR 22.9 million compared to same period of 2019. Setting aside COVID-19 negative impact, total income also increased by 7% to QAR 34.2 million as compared with the same period of 2019. Bank highlights for the quarter, income from structured products has increased by 27% as compared with the same period of 2019.

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

“Despite the bank’s good operational performance over the first quarter where the overall adopted strategy objectives were realized, the unexpected crisis of the COVID-19 had a significant negative impact on the announced results. It entailed one-off provisions in line with the best practices in place by regional and international banks, however, the good news the good operational results is a clear indication of the success of the new strategy and its profitability even in light of these unfavorable and unprecedented macroeconomic conditions. The success of the strategy invites us to adopt an optimistic outlook for the bank and its business model.”

Furthermore, fee income from structured products has increased by 27% as compared with the same period of 2019.  QFB shall continue to harness the opportunities created through revised strategy where our key priority is sustainable organic growth of the bank’s customer base of high net worth Individuals, institutional investors and government related entities.

The bank is currently working on developing new products and exploring good investment opportunities. It also aims to enhance product portfolio and diversify investment options it offers to customers. It extremely exercise due diligence to  assess, review and analyze any variables that arise from changing macroeconomic conditions in order to achieve discounted acquisitions of assets as good opportunities are usually availed in times of crisis.

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 earlier 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%.

Qatar First Bank held AGM

Qatar First Bank L.L.C. (Public) “QFB” held its Annual General Meeting (AGM) yesterday to discuss the bank’s performance and future initiatives after releasing its financials for the year ended 31 December 2019 at QFB Lounge premises in Doha, while adhering to all the precautionary measures to ensure the safety of participants.

The bank AGM presided by Chairman HE Sheikh Faisal bin Thani Al Thani, along with attending shareholders, discussed and approved, the bank’s audited financial results and the performance of the 2019 full year of operation.

HE Sheikh Faisal bin Thani Al Thani, QFB’s Chairman, said:

“2019 arguably the most enunciated year for QFB with profusely of key incidents and decisions were taken throughout the year where we witnessed a turnaround performance with three profitable quarters which is a direct manifest that QFB’s new strategy map has started generating affirmative results.”

QFB’s growth momentum continued related to its income streams where fee income increased by 103% to QAR 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 where bank reduced its total expenses by 17.2% compared to 2018.

In line with QFB’s strategy of maximizing value from its proprietary investments, QFB managed to sell its shares in FutureCard Industries and Kuwait Energy Company. Additionally, QFB signed definitive agreements to sell its shares in Food Services Company.

QFB completed the $117 million off-market acquisition of 90 North, a four-building, 262k-square-foot office campus located in Bellevue, Washington which is QFB’s sixth product offering and fourth in the US real estate market. 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.

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.