QIB nine-month profit rises 2 per cent, financing assets grow 21.9 per cent

Net profit attributable to shareholders of Qatar Islamic Bank (QIB) rose 2.0 per cent on a year earlier to QAR 3,525.2 million for the nine months to 30 September 2026, the bank said in its results release of 14 October.

The balance sheet grew far faster than profit. Financing assets rose 21.9 per cent from a year earlier to QAR 160.7 billion, and 16.1 per cent since 31 December 2025, while customer deposits rose 8.3 per cent on the year to QAR 145 billion, and 1.6 per cent since December, the release shows. Total assets were QAR 235.5 billion, up 9.7 per cent on the year, and shareholders' equity QAR 31.9 billion, up 12.2 per cent. Basic earnings per share were QAR 1.49, against QAR 1.46 a year earlier. The results release came on 14 October, the date the bank had set in a notice on 4 October.

On the release's headline figures, financing assets were equal to about 111 per cent of customer deposits at the end of September, a Boards and Capital calculation. Management told analysts the financing-to-deposit ratio was at or below 100 per cent, a transcript of the earnings call published by Investing.com shows. That implies a definition that differs from the simple ratio; the transcript does not set it out.

Income, costs and capital

Total income for the nine months was QAR 8,519.7 million, of which net income from financing and investing activities was QAR 7,659.2 million, the release shows. Net fee and commission income rose 5.0 per cent to QAR 699.8 million. Operating expenses were QAR 844.6 million, giving a cost-to-income ratio of 16.2 per cent, which the bank said is the lowest in Qatar's banking sector.

Non-performing financing was 1.51 per cent of total financing assets, with coverage of 95.1 per cent. The capital adequacy ratio, calculated under new Qatar Central Bank guidelines, was 23.6 per cent, above the minimums set by the central bank and the Basel Committee, the release said. It gives no impairment charge, cost of risk or return on equity.

The release lists three rating actions this year: Moody's affirmed QIB's long-term deposit ratings at A1 with a stable outlook in June 2026, Fitch affirmed its rating at A in September 2026, and Capital Intelligence affirmed its long-term rating at AA- with a stable outlook in March 2026.

What the call added

The Investing.com transcript, a secondary source published on 15 October, names Gourang Hemani as chief financial officer. He said 85 per cent of this year's financing growth, excluding acceptances, came from government and government-related entities, whose share of the financing book rose from 7.5 per cent in December to 14 per cent. Net profit for the third quarter alone was QAR 1.3 billion, up 1.6 per cent, the transcript shows.

Hemani said net margins were "expected to tighten by 8 to 10 basis points", a figure he gave elsewhere on the call as about 8 to 9 basis points or slightly more, the transcript records. He said the shift towards government lending was "going to put definitely at lower margins" and that the bank did "not believe any major pressures on cost of risk", the transcript shows. He put total impairment provisions at QAR 367 million.

Hemani said QIB had issued $750 million of sukuk at 4.4 per cent "just two days before this war broke out", the transcript shows. On the use of surplus capital, including any buyback, he said the board would take a decision "sometime next year". The results release says nothing about buybacks or dividends.

Management also told the call it expected financing at the end of the year to stay at the September level "or maybe marginally lower", as some syndicated financing is reduced, the transcript shows. The full-year accounts, for the year ending 31 December 2026, are the next document that will show whether the book shrinks.