DOHA: Commercial Bank of Qatar (Commercialbank) delivered strong results for the first nine months of 2012 recording a four percent increase in its net profit to QR1.565bn compared with QR1.508bn achieved in the same period in 2011.
The Bank’s total assets increased by eight percent to QR76.4bn at September 30, 2012 compared with QR70.4bn at September 30, 2011 and were up QR4.8bn from December 31, 2011.
Loans and advances to customers were up by 17 percent to QR48.4bn at September 30, 2012 compared with QR41.5bn at the end of September 2011 and were up by 16 percent from December 31, 2011. The growth in lending in 2012 has been generated from both the corporate and retail businesses.
Financial investments reduced to QR11.6bn during the nine months in 2012, one percent lower than at the end of December 2011. The decrease since the end of 2011 reflects, mainly, the maturity of government bonds and Qatar Central Bank Certificates of Deposits offset by investment in Qatar Central Bank Treasury Bills.
Customers’ deposits were at QR41.7bn in 2012, an increase of 13 percent compared with the end of September 2011, and up QR3.7bn since December 31, 2011.
Abdullah bin Khalifa Al Attiyah, Chairman of Commercialbank said: “Qatar’s economy has grown steadily in the third quarter, although at a slower rate than in the first half of the year, with demand for credit facilities continuing to be mainly from the Public Sector. Commercialbank has, however, successfully identified opportunities to grow its loan book and its revenues, delivering strong results for the first nine months of the year. We will look to maintain this momentum for the remainder of 2012.”
Hussain Al Fardan, Commercialbank’s Managing Director, said: “The operating environment in Qatar continues to be challenging but Commercialbank has delivered a positive performance in the year to date with higher earnings, growth in lending and strong asset quality. The Bank remains well positioned for continued growth in the remainder of the year.”
The bank’s net interest income for the nine months ended September 30, 2012 was QR1.404bn, two percent lower than the same period in 2011, reflecting growth in lending to customers offset by a reduction in the net interest margin. The decline in net interest margin is the result of lower average yields from lending due to intense competitive pricing pressure and regulatory changes, which capped pricing for retail products in 2011, partially offset by a reduction in the average cost of funds.
Non-interest income was QR781m for the first nine months in 2012 compared with QR718m for the same period in 2011 due to higher gains from the bank’s investment portfolio and an increase in foreign exchange income partially offset by lower levels of net fee and commission income.
Net operating income for the nine months ended September 30 2012 was QR2.185bn, two percent higher than the level achieved in the same period last year. The bank’s total operating expenses were up by 14 percent to QR709m compared with QR622m in 2011.
In February the bank repaid a syndicated loan facility of $650m whilst arranging a new $455m term loan with a club of international banks. In April the bank issued $500m five-year unsecured fixed rate notes in the international capital debt markets under its Euro Medium Term Note Programme.
The bank’s capital position remains strong with the capital adequacy ratio at 17.4 percent as at September 30, 2012 compared with 17.9 percent at the end of 2011, well above the Qatar Central Bank’s required minimum level of 10 percent.
The Peninsula
