Commercial Bank posts net profit of QR1.15 bn in first nine months

October 26, 2020

The Commercial Bank Group on Sunday announced that it reported a net profit of QR1.154 billion in the first nine months of 2020 as compared to QR1.479 billion for the same period in 2019.
Operating profit for the Group increased by 13.7 percent to QR2.306 billion in the first nine months of 2020, compared to QR2.029 million in the same period last year.
Total assets of the bank stood at QR143.1 billion at the end of September this year.
Net interest income for the Group increased by 19.8 percent to QR2.323 billion in the first nine months of 2020 compared to QR1.939 billion in the same period in 2019. Net interest margin increased to 2.4 percent compared to 2.3 percent achieved in the same period last year.
Although asset yields have reduced, the increase in margins is mainly due to proactive management of the cost of funding both in Qatar as well as Turkey, the bank said in a statement.
Total operating expenses decreased by 6.8 percent to QR768 million in the first nine months of 2020 compared with QR824.1 million in the same period last year.
The Group’s loans and advances to customers increased by 1.5 percent to QR90.5 billion at September 30, 2020 compared with QR89.1 billion in the same period in 2019. The increase was mainly in the commercial and services sectors.
The Group’s customer deposits decreased by 1.6 percent to QR73.1 billion at the end of September 2020, compared with QR74.3 billion in the same period in 2019. The decrease is mainly in time deposits. However, current and savings deposits have increased by 14 percent due to the various cash management and digital products that the bank offers.
The Group’s net provisions for loans and advances decreased by 16.9 percent to QR487.1 million in the first nine months from QR585.9 million in the same period last year.
The non-performing loan (NPL) ratio decreased marginally to 4.8 percent at September 30, 2020 compared to 4.9 percent in the same period last year.
Commercial Bank Chairman Sheikh Abdulla bin Ali bin Jabor Al Thani said, “Qatar has remained resilient through the COVID-19 pandemic, due to its strong leadership and the government’s economic stimulus measures. Commercial Bank is implementing these measures in support of our customers and the government, and we are currently one of the largest providers of loans to SMEs and sectors particularly affected by COVID-19 under the National Response Guarantee Programme.”
“Commercial Bank’s achievements during the third quarter were recognised by a number of publications and industry bodies and we have received several awards including ‘Best Digital Bank’ from Asia Money Magazine, ‘Best Retail Bank’ in Qatar from the Asian Banker for the fourth consecutive year and ‘Best Performing Bank’ in Qatar from The Banker,” he said.
Commercial Bank Vice Chairman Hussain Alfardan said, “The strong execution of Commercial Bank’s five-year strategic plan has been positively received by the market, as evidenced by the successful launch of our senior unsecured five-year bond worth $500 million in September, which was oversubscribed 3.8 times. The new bond was at one of the lowest prices achieved by a Qatari FI issuer on a public transaction. This demonstrates the efforts we have made to manage our cost of funding in the prevailing low-interest rate environment. We also attribute the success of the bond sale to Qatar’s economic strength and fiscal buffers, which have attracted positive views from global investors.”

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