By Pratap John
DOHA: Doha Bank is optimistic about maintaining the current growth rate and higher returns on equity despite global economic turbulence, Group CEO R Seetharaman has said.
The bank has posted a net profit of QR833.83mn in the third quarter, up 23% on the same period last year. Return on average equity was 27.48% and the return on average assets in the third quarter was 3.29%, which are “the best in the industry”.
“We have successfully aligned our growth with that of the country, whose GDP has been projected to grow in excess of 20%. Our exposure to real estate is limited and we have done stress tests to ensure we can withstand turbulence,” Seetharaman said, analysing the banks third quarter performance yesterday.
He said non-performing loans constituted just 2.6% of the bank’s total loans.
“We have been successfully containing bad loans in the last few years,” he said.
The bank’s earnings per share (EPS) increased to QR5.03 compared with QR4.31 in the corresponding period last year. Net interest income rose by 45% to QR697.60mn. Commission income rose by 11% to QR257.7mn.
Net operating income rose to QR1.32bn compared with QR1.01bn in the same period last year, representing an increase of 30%.
Deposits grew 29% to QR23.76bn as of September 30 from QR18.45bn. Net loans and advances in the third quarter increased by 31% or QR5.55bn from QR 18.04bn to QR23.59bn this year.
Total assets stood at QR37.51bn in September, up 31% on QR28.63bn in the same month last year.
Shareholder funds stood at QR4.8bn, registering an increase of 43% over the last 12 months.
Paid up share capital stood at QR1.72bn in September after the equity injunction by way of 15% rights issue in the second quarter.
Seetharaman said there was no need for any revision in the bank strategy of local, regional and international expansion in view of the current global credit crisis.
“It is business as usual for us. In the current quarter we will optimise our resources and maintain proper asset quality. All measurable risks will be calculated,” he said.
Doha Bank chairman Sheikh Fahad bin Mohamed bin Jabor al-Thani said, “Our strategic business model initiatives including globalisation were focused at opening commercial gateways for banking, finance, investments and trade among various blocs.
“We offer the most comprehensive set of products and services catering to the financial needs of each sector of the business community. Acknowledging the role of small and Medium Enterprises (SME), Doha Bank introduced a new product suite targeted specifically at the SME segment of the market.
“We remain committed to the development of Qatari nationals and in respect of this, we successfully launched our Global Training Programme in the third quarter 2008 to provide them the opportunity to gain overseas work experience and develop their overall banking and managerial skills at our overseas branches/representative offices. The deputation of the first batch of trainees under this programme took place recently,” he said.
Doha Bank managing director Sheikh Abdul Rehman bin Mohamed bin Jabor al-Thani said, “Our bank’s 15% rights issue had been oversubscribed by more than five times reflecting the strong confidence we enjoy from our shareholders and this region.
“The bank’s core revenue streams such as interest income and foreign exchange earnings have shown remarkable growth, which reflect on our intrinsic strength towards recurring earning capacity and productive operational performance,” he added.
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