His Excellency, Sheikh Jassim Bin Hamad Bin Jassim Bin Jaber Al Thani , Chairman of Qatar Islamic Bank has announced that QIB has achieved a net profit of QAR 1.34 billion for the year 2013, which represents a 7.6 per cent increase compared to QAR 1.24 billion for the previous year. QIB's Board of Directors proposed a profit distribution to shareholders of 40 per cent of the nominal share value ( QAR 4.0 per share) compared to 37.5 per cent last year. The financial results for 2013 along with the proposed distribution are subject to approval of Qatar Central Bank and QIB's General Assembly . Total Assets of the Bank has increased by 5.7 per cent compared to 2012 and now stands at QAR 77.4 billion compared to QAR 73.2 billion for the previous year. Financing activities continues to be the major growth driver and have now reached QAR 47.1 billion having added QAR 4 billion , representing a 9.3 per cent growth compared to QAR 43.1 billion last year. Customer Deposits of the Bank have registered a strong growth of 16.7 per cent and now stand at QAR 50.4 billion compared to QAR 43.1 billion in 2012, allowing the Bank to effectively fund its asset growth. Total Income for the year ended 31 December 2013 has reached QAR 3,144 million which is 1.3 per cent higher than QAR 3,105 million generated last year. Income from financing and investing activities has grown by 5 per cent to reach QAR 2,804 million at the end of 2013 compared to QAR 2,666 million for 2012, reflecting a healthy growth in the Bank's core operating activities. QIB was able to bring down the ratio of non-performing financing assets to gross financing assets to 0.9 per cent compared to 1.6 per cent for the previous year 2012, reflecting the quality of the Bank's financing assets portfolio and its effective risk management framework. The strong operating performance has enabled the Bank to pursue a conservative impairment policy by allocating QAR 360 million towards improving the provision coverage on financial investments and financing activities compared to QAR 491 million in 2012. As a result the coverage ratio for non-performing financing assets reached 94 per cent as at 31 December 2013 up from 62 per cent as of 31 December 2012 . Total Shareholders' Equity of the Bank increased by QAR 386 million to reach QAR 11,860 million , helping the Bank to improve its capital adequacy ratio to 16.5 per cent. Sheikh Jassim Bin Hamad Bin Jassim Bin Jaber Al Thani , QIB Chairman, commented "The Bank has increased business volumes across all market segments, which had positive impact on QIB's end of year financial results, solidifying its position as a leading bank in Qatar. QIB has managed to implement successful risk management during 2013 strengthening all prudential ratios and building a strong foundation for future business expansion." He added, "QIB keeps on supporting the local economy, investing in local talent and continues to be a good corporate citizen by supporting government initiatives and donating to the ones in need." Sheikh Jassim concluded by expressing his deep gratitude to QIB's shareholders and clients for their trust in the Bank, and his appreciation to the Board of Directors and employees for their contribution and continuous efforts towards achieving positive results. During 2013 Fitch has affirmed the Bank's long term Issuer Default Rating (IDR) of 'A' with a stable outlook. Similarly Standard & Poor's Rating Services have also maintained QIB's Counterparty Credit Rating at "A-"with a stable outlook which reflects the strong position in Qatar's rapidly expanding Islamic banking market, favourable operating environment and strong capitalization.
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