15th Oct 2008 14:18
For release 15 October 2008
Commercial Bank of Qatar
Strong overall growth for nine months ended September 2008.
Net profit up 55% to QR 1.56 billion.
Operating Income up 51.5% to QR 2.14 billion
Shareholders' Equity increased by 78.4% to QR10.2 billion
Total assets up 41.7% to QR 57.8 billion
Customers' Deposits up 19.2% to QR 29.9 billion
Wednesday 15th October 2008, Doha, Qatar: Commercialbank of Qatar (DSM ticker : CBQK), the largest private sector bank in Qatar, today announced strong net profit growth to QR 1.56 billion, up 54.8% compared to the nine months ended 30 September 2007.
The Bank's Total Assets at the end of the third quarter of 2008 stood at QR 57.8 billion, reflecting 41.7% growth from 30 September 2007. Total loans and advances similarly grew by 37.0% to QR 32.1 billion and Customers' Deposits by 19.2% to QR 29.9 billion.
During the first nine months of 2008, the Bank's capital base was strengthened by QR 3.3 billion, following the successful issue of 24 million new ordinary shares. The capital raising was accomplished as a three part process via a Rights Offering in June, a Global Depositary Receipt (GDR) Offering and a Private Placement of New Ordinary Shares in July. As at 30 September 2008 Total Shareholders' Equity amounted to QR 10.2 billion and Earnings per Share have risen to QR 8.21 from QR 5.54 at the same period last year.
His Excellency, Abdullah Bin Khalifa Al Attiyah, Chairman of the Board of Directors of Commercialbank said: "We are very pleased with this quarter's strong results. The scale of economic activity in Qatar and our diversification strategy have enabled robust growth in all of our core businesses. We must thank our loyal and supportive family of shareholders, old and new, whose confidence in the Bank and its management has contributed in large measure to our continued success."
Mr. Hussein Alfardan, Commercialbank's Managing Director added: "The Bank's sustained growth and impressive operating performance over many years, together with the success of the regional strategy, have firmly established Commercialbank as a major GCC banking group."
Commercialbank's group strategy focuses on sustaining the robust growth of its existing key business lines, with ongoing investments in new products, human resources and technology. This has been coupled with strategic diversification into new business areas and work on optimizing business and cost synergies from the Group's expanded regional presence.
Andrew Stevens, Commercialbank's Group Chief Executive Officer commented: "Commercialbank has a commitment to sustainable growth in all its core businesses, and to deliver enhanced value to its shareholders, customers, employees and other partners. The results reflect the Bank's strong overall performance. The strength and diversity of our income has been maintained and we are in a better position than ever before to build on this growth, both within the Qatar market and regionally."
During the third quarter high asset quality was maintained and efficiency ratios improved. Despite heightened competition and pressure on overhead costs, the Bank's Cost to Income ratio has been reduced to 22.0% from 23.9% in 2007. Return on Average Equity increased from 23.7% the previous year to 25.3% on a significantly larger capital base and Return on Average Assets also improved to 4.0% from 3.8% year on year.
Driven by strong performance across all business lines, Operating Income for the first nine months increased to QR 2.14 billion, representing a rise of 51.5 % against the comparative period for 2007. Continued expansion in the private sector in Qatar and strong credit demand enabled a 37.0% year on year growth in loans and advances, with major contributions from trading, real estate, and services sectors as well as SME, contractor and GCC corporate business.
Al Safa Islamic Banking has continued to perform well with net profit climbing from QR 24.33 million in September 2007 to QR 67.01 million in September 2008, representing growth of 175%. Customers' deposits also increased to QR 2.6 billion from QR 1.0 billion year on year, and total Islamic assets reached QR 3.8 billion compared with QR1.4 billion for the equivalent period in 2007.
In the retail banking business Commercialbank continued to derive competitive leverage in the first nine months of 2008 from product innovation, process improvement and expansion of the distribution network.
Commercialbank's affiliates - National Bank of Oman (NBO) and United Arab Bank (UAB), have recorded strong growth and profitability in line with the Group's expectations, contributing 9.9 % of Commercialbank's net profit in the first nine months. In line with the Group's collaborative strategy, implemented across its affiliates, NBO and UAB continued to strengthen and align business strategy, systems and risk management practices.
END -
For more information please contact:
|
Roy Leask Head of Group Corporate Communications Commercialbank Grand Hamad Avenue P.O. Box 4166 Doha - Qatar Tel: +974 449 1090 Email: [email protected] |
Heidi Robinson Capital MS&L Tel: +971 50 458 5022 Kate Delahunty Capital MS&L Tel: +971 4 427 6446 |
Notes to Editors
Commercialbank is the leading private sector and second largest commercial bank in Qatar, by total assets, shareholders' equity and market capitalization. As a full service commercial bank, it offers a complete range of retail banking, card services, wealth management, corporate banking, investment banking, Islamic banking, trade finance, and corporate internet banking services. The bank's country wide network includes 26 full service branches and 130 ATMs.
Commercialbank has achieved a compounded annual growth rate of over 40% and above in all key measures over the last five years, with the well diversified asset base rising to QR 57.8 billion as at 30 September 2008. Commercialbank has a presence in Oman and the UAE through its affiliates, National Bank of Oman and United Arab Bank. NBO is the second largest bank in Oman with total assets of RO 1.7 billion as of June 2008, and has 52 branches in Oman, 5 branches in Egypt and 1 in Abu Dhabi. UAB is headquartered in Sharjah, with total assets of AED 7.0 billion as of June 2008 and operates 9 branches in the UAE.
Commercialbank now ranks among the top 20 Arab banks by capital strength, and is one of the fastest growing banks in the economically vibrant GCC region. The Bank has prime single A credit ratings from all the three globally recognized rating agencies - Moody's, Fitch and S&P. Commercialbank is the first Qatari bank to list its Global Depositary Receipts (GDRs) as well as its bond issue on the London Stock Exchange.
For more details, visit www.cbq.com.qa
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