Doha Bank counts on core earnings to post QR716mn profit in H1

20/07/2017 07:32 AST

Doha Bank has reported 1% year-on-year growth in net profit to QR716mn in the first six months of this year, mainly helped by the strength of its core earnings. “This is another outstanding result and is clear demonstration that Doha Bank continues to perform consistently,” Doha Bank chairman Sheikh Fahad bin Mohamad bin Jabor al-Thani said.

The bank’s net operating income grew 4.8% to QR1.47bn. Total assets grew 5.1% to QR91.8bn with net loans and advances expanding 6.8% to QR59.2bn. Customer deposits showed a 6.8% expansion to QR56bn at the end of June 30, 2017, an evidence of the strong liquidity position of the bank.

“Through the strategic utilisation of the shareholders’ funds by way of increasing our performance levels, the return on average shareholders’ equity is 14.7%, one of the best in the industry,” Doha Bank managing director Sheikh Abdul Rehman bin Mohamad bin Jabor al-Thani said.

The bank, given the scale of operations, has achieved a very high return on average assets of 1.57%, which is a clear demonstration of the effective utilisation of shareholders’ funds and optimum asset allocation strategies, he said.

“In spite of challenging market conditions, Doha Bank’s strong results highlights the ever growing strength of its vision and strategy to capitalise on the market synergies, ongoing customer demand, its strong suite of products and services, resilient economy and strong banking fundamentals in Qatar,” its group chief executive Dr R Seetharaman said. During the year, Doha Bank distributed a 30% cash dividend to the shareholders for 2016 as well as successfully completed the capital increase by way of rights issue, he said. Highlighting its key achievements and innovations, he said the bank, as a founder, is in the final stage of launching the QE Index exchange traded fund (QETF), which would invest and replicate the Qatar Index’s largest 20 companies in term of market capitalisation and liquid listings.

Doha Bank’s credit ratings were reaffirmed by various rating agencies in recognition of its ability to maintain a strong growth trajectory and impressive financial ration. Recently, Moody’s reaffirmed Doha Bank’s rating at ‘A2’ and Capital Intelligence affirmed its financial strength rating and upgraded the long-term foreign currency rating to ‘A+’.

“These ratings recognise Doha Bank’s sustainable business model in the current business environment,” Seetharaman said.

A new retail home loan was launched during the quarter with an interest rate of 3.99% for the first year along with 12-month payment holiday. Doha Bank has also extensively leveraged on its vast international network to garner cost-effective deposits.

Keeping pace with the needs of customers, Doha Bank has opened two new branches at Doha Festival City and Mall of Qatar in addition to relocating the Airport branch.

Gulf Times