QFB announces third quarter financial results

Qatar First Bank L.L.C. (Public) (“QFB” or the “Bank”), a leading Shari’ah compliant bank based in Qatar, regulated by QFCRA and listed on Qatar Stock Exchange (QSE), released its financial results for the three-months period ended 30th September 2020. According to the published financials, QFB reported a net loss of QAR 20.2 million attributable to equity holders of the Bank, compared with a net profit of QAR 1.5 million in the same period of 2019.

QFB’s total income remained stable for the third quarter compared to the same period of 2019. However, the composition of total income was restructured as a result of the shift in the Bank’s strategy to focus on structured investment products.  As a result of this strategic shift, income generated from structured investment products, which includes fee income, dividend income and gain on disposal of equity assets, increased by 169% reaching QAR 13.4 million compared to QAR 4.9 million in the same period of 2019.

On the expense side, strict cost controls introduced by the Bank has resulted in a total reduction in expenses by 28% while enhancing the efficiency levels. The Covid-19 pandemic had a limited impact on the Bank’s performance in the third quarter which impacted provisions by QAR 15.8 million.

Overall, QFB witnessed a stable improvement in financial performance where major performance indicators showed healthy growth trends compared to previous financial years despite the macroeconomic challenges.

QFB’s Board of Directors commented

“As we are in the recovery phase of Covid-19, QFB’s level of resilience and agility has aided the Bank in pursuing its long-term plans. QFB’s recent addition to its portfolio ‘Varsity Brands’ received an overwhelming response from investors and it was subscribed in record-time while our investment team focused on increasing the Bank’s assets through direct sourcing of funds from existing and new clients and offering structured investment products to our investors using multiple deals that generated higher risk-adjusted returns. As part of QFB’s strategy to focus more on structured investment products, during Q3 2020 we witnessed a strong contribution from this revenue stream”

Highlights of the quarter included the appointment of Mr. Abdulrahman Totonji as the Bank’s Acting CEO. Mr. Totonji has extensive experience in business management with a particular focus on managing local and international real estate investments.

QFB’s latest acquisition, Varsity Brands, a three story, 135,0000 square foot building in Texas, USA, a timely addition to its income-generating real estate asset added to QFB’s diversified portfolio of investments. Varsity Brands currently serves as the headquarters for BSN sports, which is the leading marketer, manufacturer and distributor of sporting goods apparel and equipment in USA.

As a measure to stabilize the Bank’s future income streams and reduce the cost of funding, QFB acquired an additional Sukuk investments which brings stable income.

QFB’s share price continued to perform well during the quarter showing healthy growth compared to the last quarter and compared to the same quarter in 2019. The estimated year-on-year growth in QFB’s share was approximately 94% which is a testimony to QFB’s success in delivering value to its shareholders and investors.

Qatar First Bank acquires BSN Sports’ HQ Building “Varsity Brands” located in Texas

Qatar First Bank (QFB), the first independent Shari’ah compliant bank authorized by the QFC Regulatory Authority (QFCRA) and a listed entity in the Qatar Stock Exchange, has completed a USD$41million acquisition of Varsity Brands, a three story, 135,0000 square foot building in Texas, USA, adding another income-generating real estate asset to its portfolio of investments. Varsity Brands marks QFB’s fifth investment in the US real estate market and has been fully syndicated to the Bank’s clients.

Varsity Brands currently serves as the headquarters for BSN sports, which is the leading marketer, manufacturer and distributor of sporting goods apparel and equipment in USA. BSN Sports, markets and distributes its products to over 100,000 institutional and team sports customers in colleges and universities, middle and high schools, and recreational programs throughout the United States via catalog, e-commerce, and direct sales.

The Property expands within a land size of 8.41 AC with 600+ plus employees working including sales, customer support, and corporate executives. Property was awarded LEED silver certification in early 2019 and is located 11 miles north of downtown Dallas and within the larger Dallas- Fort worth metropolitan area.

As a part of QFB’s turn-around strategy, the Bank continues to offer secure, risk-adjusted and income-generating investment opportunities to its clients through a Shari’ah-compliant investment platform. This strategy has further fueled QFB’s goal of growth backed by turn-around financial and business performance. QFB continues to demonstrate a positive track record in investing in the US real estate market.

Commenting on the acquisition, Mr. Abdulrahman Totonji, Acting Chief Executive Officer said:
“We have completed yet another acquisition in order to cater to the demand from our existing and potential clients who are seeking to gain accesses to the US real estate market. We are very proud of our team and the hard work they have done to secure such a unique asset. We are also honored to have been able to syndicate the complete offering within a few days after going to market, and raising over 80 million QR from our investors for this product. We strive to find the perfect balance between risk and reward in the investments we offer to our clients, by securing stable cash generating assets, backed by strong entities, in developed markets. Managing our clients’ money is a responsibility that we take very seriously. We are honored by the opportunity to be the trusted partner for all of our investors when it comes to the management of their investments. We pray to Allah Almighty to help us on this journey and help us succeed in our investments.”

This investment opportunity is offered on private placement basis to “Qualified Investors” meeting the investment eligibility requirements in accordance with the rules and regulatory requirements of QFC Regulatory Authority (QFCRA).

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.

 

Qatar First Bank successfully exits second sharia-compliant aviation deal

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

New Price = Previous Capital/ New Capital X  closing price

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

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

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

QFB announces implementing reduction of Paid-Up Capital

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

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

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

To view the Financial Position After Capital Reduction, click here

To view the QFB Creditors Notice , click here

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.