QIB nine-month profit rises 2% to QAR3.5bn

Qatar Islamic Bank reported a QIB nine-month profit of QAR3,525.2 million ($968 million) for the period to 30 September 2026, up 2.0 per cent year on year, it said on 14 October.

Basic earnings per share rose to QAR1.49 from QAR1.46 in the same period of 2025. Total income reached QAR8,519.7 million ($2.3 billion), with net income from financing and investing activities of QAR7,659.2 million ($2.1 billion).

The results extend a run of modest earnings growth at Qatar’s largest Islamic lender while its balance sheet expands sharply, driven by government and government-related lending.

QIB nine-month profit: the key numbers

Net fee and commission income grew 5.0 per cent year on year to QAR699.8 million ($192 million). Total operating expenses were QAR844.6 million ($232 million), giving a cost-to-income ratio of 16.2 per cent, which the bank said is the lowest in the Qatari banking sector.

Total assets stood at QAR235.5 billion ($64.7 billion) at the end of September, up 6.5 per cent from QAR221 billion at the end of 2025 and 9.7 per cent higher than a year earlier. Financing assets jumped 21.9 per cent year on year to QAR160.7 billion ($44.1 billion), while investment securities reached QAR59.8 billion ($16.4 billion).

Customer deposits rose 8.3 per cent year on year to QAR145 billion ($39.8 billion), a 1.6 per cent increase since December. Shareholders’ equity climbed 12.2 per cent to QAR31.9 billion ($8.8 billion).

Asset quality improved, with non-performing financing assets at 1.51 per cent of total financing, down from 1.78 per cent a year earlier, and a coverage ratio of 95.1 per cent. The total capital adequacy ratio under new Qatar Central Bank guidelines was 23.6 per cent, well above regulatory minimums.

Margin pressure offsets volume growth

The gap between the bank’s double-digit balance sheet growth and its low single-digit profit growth reflects narrower margins. Speaking on the Qatar Islamic Bank results call, chief financial officer Gourang Hemani said about 85 per cent of this year’s financing growth, excluding acceptances, had come from government and government-related entities, which carry lower yields than private-sector lending, according to a transcript published by Investing.com.

Management guided that the net margin would contract by roughly eight to ten basis points in 2026 compared with 2025, with margins in 2027 expected to remain broadly stable at second-half 2026 levels, assuming no major geopolitical or interest rate shifts.

Deposits slipped around 2 per cent quarter on quarter as the bank let shorter-term balances roll off, with government deposits at 32 per cent and retail at 45 per cent of the base. QIB reported a liquidity coverage ratio above 175 per cent and a net stable funding ratio above 125 per cent, and during the period priced a five-year $750 million sukuk at 4.402 per cent under its $5 billion programme.

Hemani said the regional conflict had not yet had major implications for the bank or the market, but that funding costs had risen and the lender was prioritising liquidity buffers. He said the “prudent approach is to conserve capital and liquidity”, adding that share buybacks or special dividends would only be considered once there is greater geopolitical clarity, possibly in 2027.

Why it matters for the Qatar banking sector

Coming shortly after QNB Group’s nine-month results, the QIB nine-month profit figures offer an early read on how the sector is coping with higher funding costs and cautious private-sector demand. Rapid growth in state-linked financing has supported balance sheets across the Gulf this year, but at the cost of thinner spreads.

The bank’s ratings have held firm: Moody’s affirmed its long-term deposit rating at A1 with a stable outlook in June, Fitch affirmed its A rating in September, and Capital Intelligence kept its long-term rating at AA- with a stable outlook in March. Euromoney and Global Finance both named QIB Best Bank in Qatar during the period, and Global Finance named it Best Consumer Digital Bank in the Middle East for 2026.

Qatar Investment Authority holds a 16.3 per cent stake in the bank, according to its investor presentation. For more on the region’s lenders, see our profile of QNB Group and the latest Outlook Middle East business news.

What happens next

Management said year-end financing would likely settle around current levels or slightly lower as pending syndicated sell-downs complete, and that the bank expects to be liable for minimum taxes in 2026 and 2027 under Qatar’s tax law. It does not plan to release provisions to lift earnings, with future cost of risk dependent on the economic environment.

Investors will now look to the full-year results early next year for any decision on capital returns. The full statement is available on the QIB newsroom.