** Select a new board of directors of 10 members for the coming years
** Decision to reduce capital and amend the statutes
** 10% reduction in total costs compared to 2017
** Exiting assets of private stocks with the most variable returns
The Qatar Islamic Bank (QIB), the first Bank to meet the requirements of Shariah on the Qatar Stock Exchange (QE), held its regular and extraordinary General Assembly meeting tonight, chaired by Mr. Abdullah bin Fahad bin Garab al-Marie, The Board of Directors to discuss and approve the financial results for the fiscal year ending 31 December 2018. The Audited Financial Performance Meeting.
She also reviewed the Bank's work over the past year. The General Assembly witnessed the election of the Board of Directors candidates for the period from 2019 to 2022, with membership of 10 members: His Excellency Sheikh Faisal bin Tani Al Tani, Mr Abdullah bin Fahd bin Garab Al Marry, Dr Mohammed Nasr al-Qahtani, Mr. Abdul Latif Mohamed Al-Sada, Mohamed Ibrahim Al Jaida, Mohamed Nasser Al-Hajeri, Mohamed Usif Al Mana, Mr. Bauer International Holding, represented by Mr. Mohammed al-Hayat and the investment portfolio of the Qatar Armed Forces presented by Mr. Salem Al Marri. The Bank will now endeavor to meet the statutory and legal requirements for introducing new amendments to the Board of Directors.
The Extraordinary General Meeting approved the article approving the reduction of the Bank's capital in accordance with the regulatory requirements issued by the Qatar Financial Market Authority and the Financial Center of Qatar. An amendment to the Statute was also approved in line with the new corporate governance system.
Mr. Abdullah bin Fahd bin Gorab Al-Alri, Chairman of the Board, said the Bank was not immune to the prevailing macroeconomic conditions and the resulting global and regional unfavorable conditions that created instability and fog in key markets. Part of the alternative investment portfolio of the Bank.
The chairman added that the bank would continue to implement the capital reduction plan approved by the association, which will play an important role in the Bank's future growth. Noting that, nevertheless, our prospects for the future remain positive and optimistic. Starting a revised strategy and appointing a new board of directors with professional leadership will improve performance and speed up the return of the bank to profitability.
He pointed out that the financial year ended December 31, 2018 is a challenge for the Bank, resulting in a net loss of QR 482 million and a revaluation loss and a revaluation loss of the fair value of private equity investments of 331 million QR.
The main indicators of total income for the previous financial year, despite the loss of revaluation losses and revaluation losses of private equity investments, show a steady growth of QR222 million and 24.1% compared to QR 178 million for the previous year.
The increase in revenue from structured product sales and a 26% decline in the income of unlimited investment account holders (financial expense) is due to the good management of the deposit to credit ratio. In 2018, the Ministry of Finance and Investment Management continued to build on its success and focus on implementing strategic solutions aimed at enhancing product opportunities.
In addition, the Bank's Board of Directors and senior management have decided to adopt a strategy that focuses on modifying the Bank's business model business model from an asset-based model to revenue based on structured product revenue.
The General Assembly reviewed the Bank's Activity Report in 2018 stating that in the financial year 2018, the Bank focused its efforts on the exit from private sector assets with the most unstable returns. To this end, the Bank has successfully made its investments in the Medical Memorial Group and signed signed final agreements for the sale of its units in English Home.
In line with its new strategy, the Bank aims to increase the value added of its private equity investments and gradually move over to the next period towards a less capital-intensive business model. The Bank managed to reduce its overall cost by 10% compared to 2017 and will continue to work with portfolio companies to help expand their business and adopt best corporate governance practices. The expected market value of these investments is expected to facilitate timely exit from the bank.