Doha, QATAR: Qatar First Bank (QFB), Qatar’s first independent Shari’ah compliant bank regulated by the QFC Regulatory Authority, reported strong financial results and continued growth in 2013, as net income rose by 24 per cent from QAR 113.2 million (US$ 31.1 million) in 2012 to QAR 140.5 million (US$ 38.6 million) in 2013. For the fourth consecutive year, the Annual General Meeting (AGM) ratified the distribution of a cash dividend. This year the AGM approved the distribution of 8% of paid up share capital to QFB shareholders.
QFB, in its fifth full year of operation, invested a total of QAR 244 million (US$ 67 million) in 2013.
Abdulla bin Fahad Al Marri, QFB Chairman
The Bank’s audited financial results for 2013 were approved at its AGM held on the 24th of March 2014 at the la Cigal Hotel. Presenting an overview of QFB’s activities and financial statements for the year ended 31 December 2013, Abdulla Bin Fahad Bin Ghorab Al Marri, QFB’s Chairman, commented: “The economic backdrop in 2013 continued to be challenging, as developed economies struggled to solve their economic constraints and emerging markets experienced its own set of challenges. In the MENA region political instability continued to hamper growth and weaken confidence. On the other hand the GCC continued to experience strong growth on the back of increasing oil prices and large infrastructure spending, Qatar in particular has witnessed great economic ascendency, boosted by well-planned diversification of economic resources, development of diverse energy portfolio and support of the financial sector. During the year, QFB continued to surge ahead with key developments across all business lines. QFB’s year-on-year growth over the past five years is a clear testament to our prudent strategy that has propelled the Bank towards becoming a regional Shari’ah compliant financial institution. Our long term prospects remain solid, driven by strong fundamentals, and we are committed to continuing to provide our investors and clients with well-structured products and a world class service from an independent, experienced Islamic bank.”
Ahmad Meshari, QFB Acting Chief Executive Officer, commented: “Despite the challenging global economic backdrop, we are pleased to end our fifth year of operation on a high note. During 2013, we focused our efforts on developing our commercial banking activities building on our successful model in investment banking. Our investment line of business continued to perform well in line with our expectations as our portfolio companies posted positive results. Although the global economic outlook remains challenging for 2014, we will continue to build on our solid track record, capturing market growth, introducing innovative products, delivering sound returns to our shareholders and further position the Bank as a market-leading and results-driven financial institution.”
The Shari’ah Supervisory Board Report and the Auditor’s Report for the year ended 31st December 2013 were also presented to the AGM. The meeting also re-elected the Bank’s auditors for another period of twelve months.
The AGM was followed by an Extraordinary General Meeting (EGM) which addressed certain amendments to the Articles of Association. In particular, the Bank took steps to enhance its liquidity position and shareholder base by increasing its authorised capital by 25% to QAR2.5 billion. The funds are aimed at facilitating further growth in the Bank’s asset base and as well as positioning the Bank for the full operations of its commercial banking business. The Bank also announced that its capital of QAR2 billion was fully subscribed in the financial year 2013.
In line with the capital increase the Bank made clarifications to its local and foreign ownership limits in its Articles which would benefit any future placements of new shares. These steps further strengthen the Bank’s commitment and preparedness for its participation in the Qatar Exchange by attracting a wider spectrum of local and foreign shareholders in line with the upgrade of the Qatar Exchange to ‘emerging market’ status.
Since its inception in March 2009, QFB has invested QAR 2.1 billion (US$ 579 million) in 18 transactions across various sectors including energy, financial services, industrials, real estate and healthcare across the GCC, MENA, Turkey and in the United Kingdom.
Qatar First Bank’s 2013 annual report can be found here www.qfb.com.qa
Milestones for 2013
During 2013, QFB concluded a USD 20mn investment in UAE based Healthcare Mena Limited (HML), a growing healthcare network platform in the MENA comprising medical centres, niche surgical facilities, diagnostic facilities, tertiary care centres and related assets. HML’s strategy focuses on low to mid income bracket customers and the company is led by a strong management team with over 30 years of experience in the medical field.
June, 2013- QFB launched the first Shari’ah-compliant metal ‘World Elite MasterCard Charge Card’ in Qatar and the MENA region, The highly exclusive metal “QFB World Elite MasterCard Charge Card” presents high value benefits and rewards which include travel benefits, lifestyle concierge and insurance, among others.
The introduction of this unique metal Shari’ah-compliant charge card is the first step following the name change in March 2013 as QFB moves beyond investment banking to a Shari’ah-compliant financial institution offering a full suite of products and services.
After QFB’s successful acquisition of Westbourne House & 7-12 Leinster Square in the heart of London in 2012, the QFB team worked closely with Alchemi Group –the property development manager – to submit planning applications to Westminster City Council. In April 2013 Westbourne House was granted planning permission, followed by the Leinster Square property in May 2013. Construction work to convert both properties to luxury residential apartments is underway and is expected be completed by summer 2015.
In 2013, QFB extended to Kuwait Energy Company (KEC) a bridge facility for the acquisition of producing assets in Yemen. This facility has been repaid in full, and the Yemeni assets have made a significant contribution to KEC’s daily oil production levels. QFB acquired an equity stake in KEC in 2011.
The year 2013 held a positive start for Wasita Qatar. The QFB’s majority owned company signed several contracts with local companies to provide catering and support services. Wasita Qatar continues its efforts to benefit from the increasing demand on catering and support services in the country.
In June 2013, Al Noor Medical Company (ANMC) sold 33.9% stake through a highly successful IPO on London Stock Exchange. Astro SPV sold 22.7% stake through the IPO process bringing down its shareholding from 50% to 27.3% while cashing in US$ 152 million. QFB who holds 17.5% stake in Astro gained cash payment of US$ 26.6m, increasing its total cash received over a three-year period to more than 160% of the initial investment in Al Noor. QFB currently maintains a 4.78% stake of the company.
In December 2013,QFB’s portfolio company Al Rifai International Holding signed an agreement to sell its Al Rifai Nutisal AB (Nutisal) operations in Sweden to Cloetta; a leading confectionary company in the Nordic region, the Netherlands and Italy. The sale transaction will reflect positively on the company results and will further boost its growth.
About QFB:
Qatar First Bank (QFB), formerly known as Qatar First Investment Bank, is the first independent Shari’ah compliant investment bank authorized by the QFC Regulatory Authority (QFCRA). Launched in 2009, the bank offers Principal Investments, Asset Management, Corporate Finance Advisory and Commercial Banking services. The bank plans to list on the Qatar Exchange in the near future.
QFB has a fully paid up authorized capital of QAR 2 billion (US$ 550mn) providing the financial strength to capitalize on lucrative investments. It operates to the highest international regulatory and corporate governance standards and is ISO 27001 certified.
Adopting an investment strategy that centres on sector and geographical diversification, QFB’s target sectors include energy, financial services, industrials, real estate and health care. It has invested a total of QAR 2.1 billion in 18 transactions since inception, in different sectors and across geographies spanning the broader GCC, MENA, Turkey and UK.
The bank was recognized by CPI Financial as the “Best Investment Bank in the GCC” in the Islamic Business & Finance category in 2011.