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Commercial Bank posts net profit of QR934 mn in H1.

Tribune News network Doha Commercial Bank Group has reported a net profit of QR934 million for the first half (H1) of the year ended June 30, 2019, an increase of 9.2 percent compared to to QR855 million - the bank achieved for the same period in 2018. Commercial Bank Chairman Sheikh Abdulla bin Ali bin Jabor al Thani said, "I am proud that Commercial Bank as a leading financial institution in Qatar is able to play a key part in the development of the nation by offering a myriad of innovative banking and financial services to government entities, businesses and retail customers. "We had the honour of becoming the first company to implement the stock split and look forward to supporting the continued growth and prosperity of the Qatari economy." Commercial Bank Vice Chairman Hussain Alfardan said, "We continue to see excellent results from the execution of our five-year strategic plan. The bank has developed a strong franchise in Qatar and is renowned for its exceptional client experience and innovative services. "We continue to extend our capabilities to better serve the needs of our clients and strengthen our position in the market." Commercial Bank Group CEO Joseph Abraham said, "The strong execution of our five-year strategic plan continues to yield positive results along with the continued focus on productivity enhancements through digitization of operational processes Consolidated operating profit was QR1.29 billion for the first half of 2019, an increase of 7 percent compared to the same period last year. Joseph said, "The increase in consolidated operating profit was driven by careful management of operating expenses and positive contributions from fees and other income. "Operating expenses decreased 11 percent to QR552 million during the first half of 2019 compared with the same period last year, a result of careful cost control and savings from our insourcing programme. "Fees and other income were up 25 percent during H1 2019, compared with the same period last year, to QR629 million. The increase was driven by gains in foreign exchange trading income and investment income." Consolidated net profit was also supported by a reduction in net loan provisioning which declined 2 percent during H1 2019, supported by an improved asset quality and increased recovery of non-performing loans (NPLs), he added. Joseph said, "Consolidated net interest income was down by 8 percent to QR1.21 billion during the first half of the year, due to weakness in the Turkish lira and higher cost of funding in the Qatari market during the first quarter of 2019. "However, when comparing the second quarter of 2019 with first quarter of 2019, there was an improvement of 9.7 percent as a result of systematic efforts to improve net interest margins during the quarter." This was achieved through a reduction in the cost of funding through careful management of our cost of deposits and repricing of our loan book, he noted. The CEO said, "Loans and advances were QR84.8 billion in the first half of 2019, down 2 percent compared to the same period last year, largely due to the depreciation of the Turkish lira." Customer deposits increased moderately to QR76.9 billion, up 3 percent in H1 2019, compared to the same period last year. Total assets stood at QR141.3 billion, up by 1 percent. Meanwhile, the domestic bank reported net profit of QR870 million in H1 2019, an increase of 11 percent compared to the same period last year. "The improvement was largely driven by a reduction in net provisioning which decreased 15 percent compared to the same period last year," Joseph said. Operating profit increased to QR1.16 billion during the period, driven by cost optimisation and an increase in total fees and other income which partially offset the decline in net interest income. Loan and advances to customers were stable at QR73.7 billion in H1 2019. Customer deposits increased 5 percent to QR67.5 billion. "The lira's depreciation by circa 26 percent compared to the same period last year has impacted Alternatif Bank's comparatives when translated in terms of Qatari riyal," Joseph noted. Alternatif Bank reported an increase in net profit to TL99 million, up 25 percent compared to the same period last year. In Turkish lira, Alternatif Bank grew customer deposits by 15 percent and loans and advances by 8 percent, however in terms of Qatari riyals, currency depreciation led to a 15 percent decline in loans and advances to customers and a 9 percent decline in customer deposits, he pointed out. "Our associate, National Bank of Oman (NBO), performed steadily during the first half of 2019, reporting a net profit of OMR 25 million. UAE's United Arab Bank continues to be an asset held for sale," Joseph said.

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Publication:Qatar Tribune (Doha, Qatar)
Article Type:Financial report
Geographic Code:7QATA
Date:Jul 17, 2019
Words:803
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