Commercialbank Records Net Profit Of QR2.012bn

Commercialbank of Qatar has recorded a net profit of QR2.012bn, up seven percent for the full year 2012, compared with the same period in 2011. The profit for the fourth quarter (Q4) 2012 surged 19 percent to QR447m compared with the corresponding period in 2011.

The bank’s results for the year ended on December 31, 2012 have been announced following approval at a meeting of the bank’s board of directors. The board recommended for approval at the annual general assembly, a cash dividend of 74 percent of net profit ie QR6 per share. The financial results and profit distribution are subject to the approval of Qatar Central Bank (QCB).

Abdullah bin Khalifa Al Attiyah, Chairman of the bank said: “Credit demand has been dominated by the public sector with continuing low levels of demand from the private sector; however Commercialbank has successfully grown its lending and diversified revenue streams to deliver a record profit for the full year. Qatar’s economy is expected to be driven by the government’s spending programme in 2013 and Commercialbank is well positioned to support the future economic growth of Qatar and to deliver ongoing value to its shareholders.”

Hussain Al Fardan, Managing Director, added: “Commercialbank has successfully achieved strong earnings in a challenging operating environment. The bank has protected its core business in 2012 whilst delivering alternative sources of income. Our asset quality remains strong and we remain both well capitalised and funded to target growth sectors of the economy in the year ahead.”

The bank’s net operating income increased by four percent to QR2.98bn for the year 2012, up from QR2.86bn in 2011.

Net interest income was QR1.87bn for the year 2012, fourt percent lower than in 2011, reflecting growth in lending to customers offset by a reduction in the net interest margin to 2.95 percent in 2012 from 3.46 percent in 2011.

The net provisions for loans and advances were QR140m for the year, down 42 percent from QR239m provided in the same period for 2011. Asset quality remains strong with the non-performing loan ratio reducing to 1.09 percent at December 31, 2012 compared with 1.20 percent at the end of December 2011.

Total assets increased by 12 percent to QR80.0bn in 2012. The increase was due to growth of QR6.9bn in lending to customers and QR0.9bn in balances held with the QCB, partially offset by a reduction of QR0.6bn in investments.

Loans and advances to customers were up by 17 percent to QR48.6bn. The growth in lending in 2012 has been generated in both the corporate and retail businesses.

Andrew Stevens, Group Chief Executive Officer, said “Commercialbank has maintained the progress seen in the first half of the year to deliver a record full year profit. The Qatar market has been extremely competitive in 2012.”

Commercialbank’s associates increased their contribution to the bank’s net profit by 27 percent to QR259m in 2012 compared with QR203m for 2011.

Peninsula