• Full year net loss reduced by 24%
• QAR 1.2 million net profit recorded in Q4 attributable to equity holders of the bank
• Total expenses reduced by 6.9%
• Product related income and other income increased by 58% & 17% respectively
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 (QSE) has released its financial results for the fourth quarter and year ended 31 December 2020.
Despite challenging market conditions QFB continued to exhibit strong growth momentum for the year ending 31 December 2020 by reducing its overall net loss by 24%. The bank recorded a net loss of QAR 226.7 million for 2020 compared with a QAR 298 million loss for 2019. QFB ended the year strongly by posting a net profit of QAR 1.2 million in the fourth quarter with product fees and commissions being the main contributing factors. QFB’s efforts to implement strict internal controls, increase operational efficiency and rationalize expenditures led to the improved performance and a 6.9% reduction in overall expenses. In addition to a sustainable fee income stream, a drop in funding costs along with a better managed deposits book helped improve the bank’s balance sheet and overall liquidity position. A testament to its accelerated growth, QFBs share price outperformed the market, delivering greater value to its shareholders and investors base.
Sheikh Faisal bin Thani Al-Thani, QFB Chairman, commenting on QFB’s 2020 financial performance:
“Despite COVID19’s negative impact on investor confidence, QFB’s performance in 2020 improved and is heading in the right direction. We are pleased with the bank’s achievements and enhanced financial indicators. Our vigilant measures on corporate governance, clear strategic direction, sourcing of profitable investments, prudent risk management framework and a well-disciplined execution are bearing fruit.”
QFB remain focused on executing its adaptive strategy while implementing its well-disciplined approach to managing investments and liquidity in order to drive sustainable growth and value creation. The bank’s investment arm performed exceptionally well during 2020 acquiring a stream of high-quality Real Estate assets and was a driving force behind its fourth quarter profit. These assets received an overwhelmingly positive response from investors with most investment products being fully subscribed in a matter of days.
The transformation the bank underwent as the new management took reins yielded very positive results. Looking ahead, QFB intends to cement its position as a leading investment product provider in Qatar focused on delivering innovative financial solutions. The entire team is committed to keeping the upward trend going and is gearing for greater heights in 2021.