Qatar’s Barwa Bank Posts QR244 Mln Net Profit In Q1

Qatari Barwa Bank Group recorded very strong growth in both balance sheet and profitability, with Net Income for 2011 up by 882% at QR244m compared to QR25m in 2010. These results from the Shari’ah compliant banking group start-up, demonstrated an ability to generate revenue, keep costs under control and engineer an early move to profitability.

Total assets increased by 143% to reach QR19 bn, a result of 354% growth in the financing portfolio from QR2bn to QR9bn, with customer deposits trebling from QR3bn to QR9bn.

Net income increased to QR244m, up by 882% compared to QR25m in 2010, as Barwa Bank Group achieved strong growth across a range of businesses. In addition, the Group undertook a number of consolidation initiatives designed to drive efficiency across its support and administrative functions, a contributor to effective cost-containment . Earnings-per-share increased from.15 Dirhams to QR1.30.

Barwa Bank completed a successful capital increase a the end of 2011, a vote-of- confidence from its shareholders .The offering comprised 109,130,900 new shares for subscription and was intended to raise QR1.7bn. The overall value of shares subscribed reached QR1.9bn, an over subscription of QR233mn with coverage of 113%. Book value per share increased to QR16.4 compared with QR15.2 at 31 December 2010.This capital increase will enhance the Group’s position in the Qatari market and ensure that it can deliver on the commitment to development of Qatar’s economy

The Group was among the first to benefit from the QCB ruling regarding the closure of the Islamic windows of conventional banks and announced the acquisition of IBQ’s Al Yusr Islamic retail banking operations in August, a move that added to the bank’s customer base and branch network and allowed Barwa Bank to close the year with a network of six branches, having started 2011 with only one. The transaction was later awarded “Qatar Deal of the Year” by Islamic Finance News.

During the year, Barwa Bank launched “Prestige Banking,” aimed at its more affluent customers to provide them with a tailored suite of services that reflect their requirements and lifestyle as well as a Private Banking proposition, targeted at high net worth individuals. Press Release