Commercial Bank posts QR1.55bn 9-month profit

30/10/2014 04:36 AST

Benefiting from the successful execution of its strategy across its operations in Qatar, Turkey, the UAE and Oman, the Commercial Bank group posted a nine-month net profit of QR1.55bn, up 19% on the same period last year.

The premier bank reported a 79% jump in third-quarter net profit and earned QR503mn for three months up to September.

Commercial Bank’s total assets stood at QR114bn in September, up 8.6% on the same period last year.

Commercial Bank chairman Sheikh Abdullah bin Ali bin Jabor al-Thani said, “Qatar’s economy continues to grow robustly despite a slowing global economy. The most recent GDP growth figures of 5.7% for the country demonstrate Qatar’s resilience as the country diversifies its economy, generating an increasing share of revenue from non-hydrocarbon sectors.

“Commercial Bank has benefited during the period from the successful execution of its strategy across its operations in Qatar, Turkey, the UAE and Oman and we remain confident in our full year performance.”

Commercial Bank vice-chairman and managing director Hussain Alfardan said, “The third quarter has seen a solid performance from Commercial Bank, a strong year-on-year performance from ABank and continued consistent profit generation from our associates in the UAE and Oman. These performances have enabled Commercial Bank to deliver a 79% year-on-year increase in quarterly profit from QR281mn to QR503mn.”

The bank’s net provisions for loans and advances were QR378mn for the nine months to September, up from QR368mn in the same period for 2013.

The non-performing loan ratio fell to 3.71% in September compared with 3.82% at the end of June this year and the coverage ratio increased to 68.3% compared to 67.3%.

Impairment provisions on the bank’s investment portfolio dropped to QR43mn for the nine months that ended in September compared with QR77mn for the same period in 2013.

Loans and advances to customers were up by 9% to QR70.7bn in September compared with QR64.9bn at the end of September 2013. The growth in lending since September 2013 has been generated, mainly, in the government, contracting, real estate and retail sectors.

Customers’ deposits grew marginally by 0.8% to QR58.1bn in September compared with QR57.7bn in September 2013. The increase in deposits came mainly from higher demand and savings balances.

Partially offsetting this increase was a reduction in time deposits due to the bank having received funds from the EMTN issuance in June 2014. This, Commercial Bank said, reflects its strategy to ensure continued diversification of our funding base and our focus on growing low cost funds.

Commercial Bank Group CEO Andrew Stevens said, “The strategies we have put in place across our regional assets are demonstrating good progress. We have focused on improving our returns and we have done this by only pursuing lending opportunities that match our return expectations, continuing to attract lower cost deposits, diversifying our funding base and effectively managing our costs.”

Commercial Bank CEO Abdulla Saleh al-Raisi said, “Commercial Bank has delivered a robust performance. The Qatari market remains highly competitive and we have maintained our selective approach to lending opportunities. We continue to defend and drive our profitability in Wholesale and grow our market share in retail by offering a convenient and multi-channelled banking experience to our customers. We have seen good progress from our Turkish business, ABank.

Gulf Times