How do you see the Qatari economy evolving in the next few years, and what factors do you believe will drive growth?
Qatar’s economy is on a solid trajectory for sustained growth, driven by strategic initiatives aligned with Qatar National Vision 2030. Over the next few years, we expect to see continued efforts to diversify the economy, with a clear shift toward a knowledge-based framework that emphasises innovation and sustainability. Sectors such as technology, healthcare and education will play pivotal roles in shaping this future.
Energy will remain a cornerstone, particularly with the North Field Expansion Project, which will boost liquefied natural gas production significantly.
We are also witnessing rapid advancements in infrastructure and smart city development, which will contribute to Qatar’s overall competitiveness and quality of life. Digital transformation is another major driver of growth, particularly in sectors like banking, where we at QIB are committed to leading the way.
How well prepared is the banking sector for potential challenges like swings in energy prices or geopolitical instability?
The banking sector in Qatar is well equipped to manage potential challenges such as fluctuations in energy prices or geopolitical uncertainties.
Qatar’s economy has taken significant steps towards diversification, which reduces the direct impact of energy price swings on the broader economy. From a financial standpoint, the banking sector remains robust, with high levels of capitalisation, strong liquidity buffers and prudent regulatory oversight.
These factors ensure that we can withstand external shocks and continue to provide seamless financial services to our clients. At QIB, we have a proactive risk management framework that allows us to respond swiftly to market changes, safeguarding both our customers and our business.
What are some of the highlights from QIB’s financial performance over the first half of this year?
QIB’s financial performance over the past year reflects our continued success and leadership in Qatar’s banking sector. We have achieved several important milestones, demonstrating our strength and resilience in an evolving market.
In the first half of 2024, QIB reported a 5.6% year-on-year increase in net profit to QAR2bn ($567m). This is a testament to our strategic focus on sustainable growth and operational efficiency.
Our total income for the period grew 12.4% to QAR5.6bn, reflecting the robustness of our diverse revenue streams. QIB’s total assets stood at QAR192.3bn, marking a 4.9% year-on-year increase, while customer deposits grew 5% to hit QAR122.7bn.
These strong financial results, and the fact that the bank’s cost-to-income ratio is the best in Qatar, reflect our ability to innovate and grow, despite global and local challenges, positioning us to support Qatar’s economic development in the years to come.
What are the bank’s strategic priorities over the next three to five years, and how do you plan to achieve them?
Our long term strategy centres around further developing our digital banking infrastructure and transforming QIB into a fully data-driven organisation. This includes a strong focus on customer personalisation and data-centric decision making.
QIB’s new strategy also prioritises ESG integration. We are committed to driving financial inclusion and promoting sustainable practices across all operations. By embedding ESG principles into our business model, we are not only meeting our customers’ evolving expectations but also aligning with Qatar’s national sustainability goals.
Collaboration with FinTech companies and other partners will be another pillar of our strategy. We will continue to integrate cutting-edge financial solutions into our offerings, ensuring that our customers have access to innovative, user-friendly services that meet their financial needs and contribute to their overall experience.
Can you expand on how the bank is addressing sustainability and envir-onmental, social and governance issues?
At QIB, sustainability and ESG are not just add-ons to tour business but core components of our overall strategy. We are committed to integrating environmental, social and governance principles into every aspect of our operations, aligning with both global trends and Qatar’s national sustainability objectives.
One of our key initiatives is the launch of our Carbon Emission Tracker, developed in collaboration with Visa and a German FinTech. This innovative tool empowers our customers to track their carbon footprints, based on their spending habits. As awareness around sustainable practices grows in the region, the Carbon Emission Tracker aligns perfectly with our mission to lead in responsible banking. It also reinforces our commitment to Qatar’s national sustainability goals, demonstrating how the banking sector can actively contribute to environmental stewardship.
How is digital transformation shaping the evolution of banking in Qatar, and what technological innovations is the bank prioritising?
Digital transformation is fundamentally reshaping the banking landscape in Qatar, and QIB is at the forefront of this evolution. We have developed a suite of digital solutions tailored to the diverse needs of our clients.
One of our standout innovations is the launch of a dedicated app for low income earners, a segment that has historically faced challenges in accessing traditional banking services. This app enables users to perform essential banking activities such as international transfers and payments, directly addressing the needs of migrant workers. We’ve seen a remarkable increase in international transfers and an astounding 493% growth in direct corridors supporting transactions with key countries.
Our digital-first approach is aligned with Qatar’s broader financial inclusion goals, ensuring that underserved communities can access secure and efficient financial services.
Our focus on technology-driven innovation extends to the entire banking ecosystem, with personalised digital platforms for various customer segments. By leveraging data, FinTech collaborations and cutting-edge technology, QIB is transforming how banking is experienced in Qatar.