Qatar First Bank LLC (Public) (“QFB” or “Bank”) announced its financial results for the year ending 31 December 2021, recording the Bank’s highest ever net profit attributable to equity holders of the bank of QAR 100.37 million in the previous 6 years.
With a solid strategic direction under the new leadership, QFB overcame the difficult market conditions followed by the challenges of the outbreak of the COVID-19 pandemic. The Bank improved its operational efficiency, developed new investment products and services, expanded its client base which led to an outstanding performance and significant growth in its financial results in 2021.
The Bank maintained a sustainable fee income stream, reduced its funding costs in deposits, which resulted in a stronger balance sheet and healthy liquidity position for the year. The Bank further rationalized its operating cost by 15% over the previous year improving its operational efficiency.
The Bank’s total Assets Under Management (AUM) reached QAR 3.85 Bn, an increase of 79% over the last year, following the various real estate acquisitions in the US real estate market. In 2021, QFB completed five new acquisitions in the United States and Qatar including LULU Messila hypermarket building, the HQ of Huntsman International, Fouteen555 a 2020-award winning multi-tenant office building, Phase 1 of Healthcare Technology Company Headquarters, and Ten West Corporate Center One.
The Bank made successful exits in its different business lines in the year 2021. In the Private Equity segment, QFB exited Cambridge Medical and Rehabilitation Centre Ltd, a healthcare company selling its stake for QAR 115 million and clocking an IRR of 19%. The Bank also exited Kennedy Flats, a multifamily residential building in the US, generating more than 9% IRR for its investors since its acquisition 3.5 years ago. The Bank invested in a fixed income portfolio to diversify its income base and improve its liquidity during 2021.
Total income reached QAR 226.7 million for the year ending 31 December 2021 compared to a total loss of 42.7 million for the same period last year. The Bank increased its fee and dividend income from QAR 19 million to QAR 44 million registering a growth of 131%, mainly driven by QFB’s focus on real estate investments and Sukuk funds.
Total equity attributable to QFB’s shareholders reached QAR 573 million at the end of 2021, while the capital adequacy under Basel III reached 18% at the end of the year, which affirms QFB’s strong financial position.
In addition, QFB’s client base increased by more than 100% which reflects the Bank’s successful strategy and the clients’ confidence in its products and services.
The Bank’s asset portfolio, profitability growth and increase in client base reflects its continuous efforts in improving the quality in various business parameters.
Commenting on the results, Sheikh Faisal bin Thani Al-Thani, QFB’s Chairman said: “In 2021, QFB was led by a clear strategic direction which helped us achieve an outstanding performance and full year profit for the first time in six years. After a prolonged battle against losses that lasted several years, and despite the challenges of the COVID-19 pandemic on the economy and financial sector, we managed to recover and expand our client base with the direction of a new leadership, the Board of Directors, and a new strategy.”
Sheikh Faisal added: “This year’s results are a testament to QFB’s resilience and a reflection of the solid banking sector in Qatar. The planned capital increase lays a strong foundation for further growth, and we are committed to continue sourcing new investments and expand our portfolio with a stronger presence in the US real estate market through our services and products. We have acquired a stream of high-quality assets locally and internationally this year which is the driving force behind the significant improvement in our profitability.”
Mr. Abdulrahman Totonji, QFB’s CEO added: “QFB’s outstanding performance in 2021 is truly notable and reflects our teams’ continuous efforts to gradually build a stable income stream, while improving our balance sheet position and liquidity level. We have taken vigilant measures this year setting up new performance indicators for the Bank, our clients, and partners. With the continuous trust and confidence of our shareholders, we have witnessed remarkable growth and we will continue to introduce new investment products targeting different financial needs with attractive returns in line with our strategy. We are very pleased with the positive contribution from all our business lines to meet the increasing demand of the investors. It is truly a blessing from God and then a result of the hard work of our team. I am proud to be part of the QFB family and part of this renewed growth.”
Qatar First Bank LLC (Public) is the first independent Shari’ah compliant bank authorized by the QFC Regulatory Authority (QFCRA) and a listed entity on the Qatar Stock Exchange (QSE: QFBQ).