Doha Bank Achieves Profit Growth of 10.2%
His Excellency Sheikh Fahad Bin Mohammad Bin Jabor Al-Thani, Chairman of the Board of Directors of Doha Bank, announced Doha Bank’s financial results for the first half of 2019. He said that the bank achieved net profit for the first six months of 2019 at QAR 519 million as compared to QAR 471 million for the same period in 2018 showing an increase of 10.2% , and added that the bank has made significant progress in improving the cost management and efficient utilization of resources where the operating cost for the period decreased by 8.2% as compared to same period last year thus reducing the cost to income ratio to 35.5% from 36.6% showing bank’s productive operational performance.
H.E. Sheikh Fahad added that the total assets increased by QAR 11.6 billion, registering a growth of 13.1%, from QAR 89.2 billion as at 30 June 2018 to QAR 100.8 billion as at 30 June 2019. Net loans and advances increased to QAR 60.9 billion as at 30 June 2019 from QAR 58.0 billion for the same period last year, registering a growth of 5.1%. Customer deposits showed a year on year increase of 7.2% from QAR 51.9 billion to QAR 55.6 billion as at 30 June 2019 which is evidence of the strong liquidity position of the Bank. H.E also pointed out that the total financial investment portfolio increased by QAR 5.5 billion, showing a significant growth of 27.7% as compared to the same period of the last year.
H.E. Sheikh Fahad highlighted that the achieved profit of QAR 519 million for this half year as against QAR 471 million of last year same period is due to robust growth on investment income and control on operating expenses, while kept the focus on strengthening the provisions. His Excellency Sheikh Fahad expressed his satisfaction with the growth of the interest income by 5.5% as compared to the same period last year.
He added that, Fitch has affirmed Doha Bank’s Long-Term Issuer Default Rating (IDR) at ‘A’ with a ‘Stable’ outlook, which recognize Doha Bank’s sustainable business model in the current business environment.
H.E. Sheikh Abdul Rehman Bin Mohammad Bin Jabor Al-Thani, Managing Director of Doha Bank said “The total shareholder’s equity stood at QAR 13.3 billion as at 30 June 2019 from QAR 12.5 billion for the same period last year, registering a growth of 5.7%. The bank continued to strengthen its key capitalization ratios, where the total capital adequacy ratio of the bank increased to 17.4% as at 30 June 2019 from 16.6% as compared to the same period last year. The bank, given the scale of its operations, has achieved a return on the average assets of 1.05% as at 30 June 2019”. H.E. Sheikh Abdul Rehman lauded the performance of the QE Index ETF ‘QETF’ fund, where the fund achieved a total return of 20% in 2018, outperforming most ETFs in the world. Commenting on the performance, Dr. Seetharaman Chief Executive Officer of Doha Bank said, “This achievement is the culmination of untiring efforts of various parties who contributed to the QETF’s success in its first year of operations.” He further added: “we believe the QETF holds immense promise and opens a gateway to the Qatari market for global investors.”
Dr. R. Seetharaman, Chief Executive Officer of Doha Bank, said “Despite challenging market conditions, Doha Bank’s performance throws light on its superior products and services, ongoing customer demand and capitalizing on market synergies.” The bank’s top ranking of listed companies in Qatar by ESG Invest, for the second year in a row, reinforced its position as a global sustainability leader.
During the year, Doha Bank completed 40 years of operations. The bank announced a campaign by offering gold rewards, launched a new housing loan campaign as well as a Qatari buyout loan campaign offering interest rates as low as 0%. Commenting on this achievement, Dr. Seetharaman said, “This new campaign is our way of thanking our loyal customers for their continued support throughout the years as well as for inspiring us to innovate new products and services to excel in our business.” Furthermore, the bank also offered a new Al Dana Savings Plan, a summer promotion for visa credit cardholders to earn additional Doha Miles on international spend, a personal loan campaign with MetLife’s Future Protect insurance policy and a new car loan campaign. Earlier in the year, Doha Bank launched the 16th edition of its Al Dana Scheme, crowned the final millionaire of Al Dana Savings Scheme’s 15th edition, unveiled the latest release of ‘Doha Bank My Book Qatar’ and felicitated winners of its ‘Qmiles’ and ‘Gold Rush Cards’ campaigns. As part of its 40th anniversary, the Bank also held its annual ‘Long-Service Awards’ ceremony to celebrate the commitment and loyalty of its employees.
In testament to its performance, Doha Bank was awarded ‘Corporate & Investment Bank of the Year – Qatar’ and ‘Qatar Domestic Cash Management Bank of the Year’ – both by Asian Banking & Finance. The bank also received ‘Best Trade Finance Bank in Qatar 2019’ by Global Finance Magazine, THE BIZZ Award at THE BIZZ EUROPE 2019 event, and ‘3G Financial Services Award 2019’ at the Global Good Governance (3G) Awards function. In recognition of the Bank’s compliance with the highest standards in developing and implementing an Information Security Management System, Doha Bank became the first bank in Qatar to achieve ISO 27001 certification.
Fahad Bin Mohammad Bin Jabor Al-Thani