Commercialbank of Qatar Q1 net jumps 40pc
Doha, April 20, 2009
Commercialbank of Qatar psoted a net profit of QR610 million ($167.7 million) for the first quarter of this year, an increase of 40 per cent, compared with QR436 million ($119.9 million) for the same period last year.
Net profit of QR610 million includes QR165 million profit on sale of property assets.
Net operating income for the first quarter of 2009 rose by 46 per cent to QR836 million from QR571 million in the prior period.
The increase in net operating income was largely driven by a 66 per cent increase in net interest income to QR370 million, whilst loan-related fees reduced in line with lower levels of lending.
Despite this, customer loans grew by 27 per cent to QR34.8 billion compared with QR27.4 billion at the end of the first quarter in 2008.
Total assets increased by 30 per cent to QR63.5 billion compared with QR48.8 billion at the end of the first quarter in 2008 which reflected higher customer lending and also an increase in cash and inter-bank placements.
Customers’ deposits grew by 8 per cent to QR30.7 billion compared with QR28.4 billion.
During the first quarter, Commercialbank decided to take up the Government of Qatar’s offer to buy its Qatar equity investment portfolio, as part of the Government’s proactive initiative to support the Qatari banking sector.
On March 22, 2009, Commercialbank sold its entire portfolio of Qatar equities which had a net book value of QR938 million at December 31, 2008. The Government paid QR418 million in cash and provided a five year bond of QR520 million which carries a coupon of 5.5 per cent per annum.
'In a challenging trading environment, Commercialbank has delivered a strong set of financial results for the first quarter of the year,' stated Abdullah Bin Khalifa Al Attiyah, chairman of the Board of Directors of Commercialbank.
'Risk management is embedded at the centre of our business strategy and it has enabled the Bank to position itself appropriately for what will be another challenging year in local and regional banking markets,' he added.-TradeArabia News Service