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Qatar Islamic Bank Reports Higher 2025 Net Profit on Lower Costs and Stronger Investment Income
2026-01-18

Qatar Islamic Bank Reports Higher 2025 Net Profit on Lower Costs and Stronger Investment Income

  • Net income from financing activities declined by 12% year over year, while net income from investment activities increased by 9% year over year.

  • Qatar Islamic Bank shares rose by as much as 12% during 2025.

  • Net profit was supported by a significant increase in investment income and lower financing costs and impairments, partially offset by a sharp decline in financing income.

In 2025, Qatar Islamic Bank delivered a solid financial performance, underpinned by cost optimization and stronger investment income. Net profit increased to QAR 4.83 billion, compared with QAR 4.60 billion in 2024, reflecting a 5% year-over-year increase.

The bank also demonstrated strong equity market performance during the year. The share price opened 2025 at QAR 21.36 and closed at QAR 23.95, representing a 12% annual increase. In comparison, the broader QSE Index recorded a more modest gain of approximately 2%, highlighting Qatar Islamic Bank’s relative outperformance.



Key Financial Highlights (FY 2025)

  • Net income from financing activities: QAR 9,092 million, compared with QAR 8,584 million in 2024 (a 5% YoY decline).

  • Net income from investment activities: QAR 1,722 million, compared with QAR 1,587 million in 2024 (a 9% YoY increase).

  • Net profit: QAR 4,830 million, compared with QAR 4,600 million in 2024 (a 5% YoY increase).

  • Earnings per share:QAR 1.95, compared with QAR 1.86 in 2024 (a 5% YoY increase).

  • Dividend per share:QAR 0.90, compared with QAR 0.80 in 2024 (a 12% YoY increase). Dividends in 2025 were paid in two semi-annual tranches.





The operational dynamics of Qatar Islamic Bank improved during the year, as the ratio between operating income and returns to unrestricted investment account holders increased from 2.35 in 2023 to 2.40 in 2025. This improvement was primarily driven by prevailing global macroeconomic conditions, which contributed to lower financing costs.

The decline in investment accounts provided a positive boost to net profit, resulting in a QAR 250 million favorable impact. Conversely, higher profit shares allocated to sukuk holders had an adverse impact of QAR 58 million.

A closer look at the bank’s two main income streams shows diverging trends. Income from financing activities declined sharply, resulting in a negative impact of QAR 492 million on net profit. This was partially offset by a strong increase in investment income, which contributed a positive impact of QAR 136 million.

Impairments also supported profitability, as they increased at a slower pace compared with the previous year, generating a positive net profit impact of QAR 273 million.



For more comprehensive financial insights and data-driven analysis, please visit https://sahmik.com.

Source: Sahmik