Board of Directors Report
Sheikh Jassim Bin Hamad Bin Jassim Bin Jaber AI Thani - QIB Chairman
As we close the year 2024, on behalf of the Board of Directors, I am proud to reflect on QIB’s remarkable journey and the significant milestones we have achieved. Our financial performance this year is a testament to the bank’s solid strategy, innovative initiatives, and unwavering commitment to delivering exceptional value to our customers, shareholders, and the broader community. Beyond financial success, 2024 was marked by groundbreaking advancements in digital banking, steadfast dedication to environmental, social, and governance (ESG) principles, and robust partnerships within the corporate sector.
At QIB, we prioritize our customers by placing their needs at the forefront of our operations. This year, we strengthened our core businesses and expanded revenue streams with innovative products and services. Our focus on technology adoption, cost optimization, and customer-centricity has resulted in a record net profit of QR 4,605 billion and positioned us as one of the world's most efficient banks. We delivered strong ROA and ROE ratios, providing high returns to our shareholders and reinforcing our confidence in achieving future objectives. A balanced and diversified balance sheet remains a cornerstone of our strategy, enabling us to cater to all segments of the Qatari economy while upholding stringent risk management practices, including ESG integration. With one of the lowest non-performing financing assets ratio in Qatar and a sharp increase in digital adoption, including 99% self-service transactions and significant contributions from digital sales, we are setting benchmarks in operational excellence.
Indeed, we have continued to lead the digital banking landscape in Qatar by introducing innovative services that enhance customer convenience and accessibility. Among the highlights of 2024, we expanded our Direct Remit Services to new countries, introduced International Wallet Transfers and Cash Pickup, offering instant money transfers through our Mobile App. Additionally, we launched the first in Qatar “Auto Marketplace”, revolutionizing the car-buying experience by integrating financing and vehicle research, selection and purchase. Key advancements also include the rollout of the e-KYC guidelines that allowed QIB to onboard new customers fully digitally, and the introduction of digitally stamped certificate and statements, reflecting our commitment to customer-centricity and technological excellence.
In alignment with our vision to drive sustainable growth, QIB took significant strides in environmental, social, and governance initiatives. This year, we introduced a new Sustainable Deposit and partnered with the Qatari Businesswomen Association to empower women in business. Furthermore, we joined DHL Express Qatar in their GoGreen Plus Program and partnered with INJAZ Qatar to support life skills development for preparatory students. These efforts underscore our commitment to creating long-term value for our stakeholders while contributing to the well-being of society.
On the corporate banking front, QIB continued to foster strategic alliances to deliver innovative solutions. We signed a landmark agreement with Edaa to streamline dividend distributions for shareholders of listed companies in Qatar and partnered with the Qatar Financial Centre (QFC) to provide seamless banking solutions for licensed firms.
In September 2024, we successfully issued a USD 750 million Sukuk, reflecting the confidence of global investors in QIB’s stability and growth prospects.
Finally, QIB has been investing in its people, with our Learning & Development team delivering over 46,523 hours of training with a diverse curriculum strengthening our organizational resilience through sessions on published policies, regulatory risk, compliance aspects and business continuity. We also continued building organizational capabilities through our talent management and Qatarization programs while offering career progression paths with clarity and commitment to our employees.
Looking back at the 2024 fiscal year, QIB had achieved positive progress, cementing its position as one of the largest Islamic banks internationally. Total Assets of the Bank now stand at QAR 200.8 Billion, Customer Deposits stand at 125.0 Billion, and Total Income reached QAR 11.7 Billion representing a healthy growth of 9.4% compared to 2023. QIB continues to pursue the conservative impairment policy maintaining a robust 95% coverage ratio for non-performing financing assets by the end of 2024. In the light of these remarkable results, QIB reported a Net Profit attributable to shareholders of QAR 4,605 Million with an increase of 7% compared to 2023. Accordingly, it is recommended that your esteemed Assembly approve the distribution of additional cash dividend of 55% of the paid up share capital, i.e. QAR 0.55 per share taking the total cash dividend during the year to 80% of the paid up share capital, i.e. QAR 0.80 per share.
Concluding, on behalf of the Board of Directors, I would like to extend our sincerest gratitude and appreciation to His Highness the Amir, Sheikh Tamim Bin Hamad Bin Khalifa Al Thani, and to His Highness the Father Amir, Sheikh Hamad Bin Khalifa Al Thani, for their continuous support and encouragement to the banking sector in the State of Qatar.
I would also like to thank all officials concerned with the banking sector in Qatar, particularly Qatar Central Bank, for their continued support on all components of the banking and economic activity. This support is highly appreciated. I also thank our customers, investors, and shareholders for their confidence and loyalty, and the Shari’a Supervisory Board for all their good work. I conclude by praising and appreciating the efforts and loyalty of the Group Chief Executive Officer and his team of dedicated executives, which yielded outstanding results that helped the Bank reach a top position.