DOHA: Commercial Bank of Qatar delivered a net profit of QR1.30bn for the nine months ended September 30, 2013. The bank’s total assets are up 32 percent on year-on-year to reach QR105.3bn.
Abdullah bin Khalifa Al Attiyah (pictured), Chairman of the Board of Directors of Commercial Bank said: “We continue to see enormous opportunities for Commercial Bank across our chosen operating markets. The significant infrastructure development required in Qatar provides clear opportunity, whilst the strong recovery in the UAE and the growing trade and investment flows between the Gulf and Turkey also supports our strategy of continuing to grow and diversify our revenue streams..”
Hussain Al Fardan, the bank’s Managing Director, commented on the financial results saying: “During the third quarter of 2013, we have seen some improving trends in our financial performance. Despite the historically slower market conditions of the third quarter, lending has increased by three percent since June 30, 2013, supported by a seven percent increase in our deposit base, and is up by 10 percent for the year to date.
“Net interest income has also increased quarter-on-quarter along with a small improvement in our net interest margin. Fees were down compared with the second quarter but have increased overall year-to-date compared with 2012….”
Net provisions for loans and advances were QR368m for the nine months ended September 30, 2013, up from QR66m provided in the same period for 2012; the first half of 2012 included the recovery of provisions of QR89m.
Provisions for impairment on the bank’s investment portfolio increased to QR77m for the nine months ended on September 30, 2013 compared with QR35m in 2012. The increase was due, mainly, to provisions taken against our emerging market strategic equity investments, in line with international accounting standards, reflecting the downturn seen in emerging market currencies and stock prices during the third quarter.
The bank’s net profit was QR1.30bn for the first nine months of 2013 compared with QR1.56bn for the same period in 2012.
Loans and advances to customers were up by 34 percent to QR64.9bn at September 30, 2013 compared with QR48.7bn at the end of September 2012 and QR48.6bn at December 31, 2012. The growth in lending since 30 September 2012 in Commercial Bank has been generated, mainly, in the services, contracting and real estate sectors.
Customers’ deposits were QR 57.7bn at 30 September 2013, an increase of 38 percent compared with the end of September 2012 and up 39 percent since 31 December 2012 with the Bank up 21 percent and the inclusion of QR7.5bn for ABank.
Andrew Stevens, Commercial Bank’s Group Chief Executive Officer, said: “The acquisition of Alternatifbank (ABank) in July realised an important element of our overall strategy: to diversify our business into attractive, long-term growth markets. With the growing level of trade and investment between the GCC and Turkey, Commercial Bank, together with its regional partners, is now in an excellent position to capture an increasing share of the value of this trade as it supports its customers in their commercial objectives.”
ABank Group delivered profit of QR1m during the third quarter with total assets of QR 16.7bn and lending of QR 10.6bn at September 30, 2013. Commercial Bank’s associates increased their contribution to the bank’s net profit by 27 percent to QR242 m in the nine months ended September 30, 2013 compared with QR190m for the same period in 2012.
National Bank of Oman (“NBO”) delivered a net profit after tax for the nine months ended 30 September 2013 of OMR 31.2m compared with OMR 30.5m achieved in 2012. United Arab Bank (“UAB”) delivered a net profit of AED 414 m for the first nine months of the year, an increase of 39 percent from AED 298m achieved in the same period in 2012.
The Peninsula
