DOHA: The Commercial Bank QSC reported a net profit of QR1.34bn for the nine-month period ended September 2015, compared to QR1.55bn for the same period in 2014, a decrease of 13.7 percent. The bank’s net operating income rose by 4 percent to QR3.05bn and total assets are up 4.3 percent to QR119.2bn on year-on-year.
Sheikh Abdullah bin Ali bin Jabor Al Thani, Chairman of the Board of Directors of Commercial Bank, said, “The global economy continues to adjust to the challenges of a lower oil price, a continuation of low global interest rates, and a moderation in emerging markets’ economic growth. Despite these challenges, Qatar’s economy continues to diversify, recording the highest non-oil GDP growth rate in the GCC region. Commercial Bank’s strategy, guided by its Board of Directors, enables it to take advantage of Qatar’s growing private sector, utilising our 40 year heritage of servicing the financing needs of growing companies in Qatar and the region.”
Commenting on financial performance, Hussain Alfardan, Commercial Bank’s Vice-Chairman and Managing Director said, “Commercial Bank has continued to build on its strategy of creating sustainable value for our customers and shareholders. The continued successful execution of our strategy means that Commercial Bank remains well positioned to generate value even as we expect the growth of our markets to moderate. Commercial Bank delivered a solid performance for the nine-month period of 2015. The bank’s UAE associate partner United Arab Bank has experienced difficult market conditions resulting in prudent provisioning during the period, which has affected our net profit.”
The bank’s net interest income was QR1.9bn for the nine months, 2 percent lower than the same period of 2014, mainly due to a reduction in asset yields atAlternatifBank. Net interest margin decreased marginally to 2.5 percent as compared to 2.6 percent in the same period in 2014.
The Bank’s net provisions for loans and advances were QR544m for the nine months, up 44 percent from QR377m for the same period in 2014. The non-performing loan (NPL) ratio has reduced to 3.6 percent and the coverage ratio increased to 81.3 percent as at September 30, 2015, compared to 68.3 percent a year ago.
Impairment provisions on the Bank’s investment portfolio reduced to QR25m for the nine months ended September 30, compared with QR43m for the same period in 2014.
Loans and advances to customers were up by 3.8 percent to QR73.4bn, compared with QR70.7bn a year ago.
Investment securities is up 35.1 percent to QR18.4bn compared with QR13.6bn for the same period in 2014. The increase is mainly in Treasury bills issued by the Central Bank and government bonds.
Abdulla Saleh Al Raisi, Commercial Bank’s Chief Executive Officer, said, “The dynamics of our markets mean that we are seeing a growing range of opportunities for Commercial Bank. The private sector is becoming an increasingly important driver of Qatar’s economy, as well as those of our other markets, whilst the public sector continues to offer good opportunities”.
The bank’s subsidiary in Turkey, Alternatifbank delivered an18.4 percent increase in net profit to TL 116 million for the nine months ended September 2015 (TL 98million for 2014).
National Bank of Oman (NBO), the bank’s associate in Oman, achieved a net profit of OMR 43m, an increase of 16 percent over 2014.
United Arab Bank, another associate in the UAE, delivered a net profit of Dh72m for the nine months, which is lower by 85 percent over the same period in 2014.
