Doha Bank’s capital adequacy to remain strong; eyes revenue optimisation and cost reduction

Doha Bank's capital adequacy is slated to remain strong in the short term to medium term given the credit growth projections, without further capital raising and its focus will continue to be revenue optimisation and cost reduction as part of its future plans.
This was disclosed by the bank at an investor presentation provided at the annual general assembly meeting, where shareholders approved all the items on the agenda.
In support of its "strong" current capital position, the bank highlighted that CET1 (common equity Tier 1) stood at 8.50%; Tier1 at 10.50%; total CAR at 12.50%; ICAAP (Internal Capital Adequacy Assessment Process) at 1%; and management buffer at 0.50%.
With a view to strengthening the lending capacity and improving the competitive edge and prospects for achieving the strategic goals, Doha Bank during the past years focused on enhancing its Tier 1 capital base and CAR through the issuance of Tier 1 capital instruments amounting to QR2bn in each issuance (total of QR4bn) qualifying as additional Tier 1 capital for Doha Bank in Qatar as per the terms and requirements of Qatar Central Bank.
Risk and capital management will also remain one of the core attention areas for bank, especially in view of the impact of geopolitical, macroeconomic and other global changes.
Factoring in the rapid evolution to technological landscape, "Doha Bank is considering automation, digitisation, and innovation at the heart of its strategy," its chairman Sheikh Fahad bin Mohamed bin Jabor al-Thani said in the board of directors report presented at the meeting.
The bank would continue embracing emerging technologies to build customer-centric solutions, he said.
"As the financial services industry stands at an inflection point, and several disruptive forces such as digitisation, competitive pressure, and fast evolving regulations are enforcing a bigger change; Doha Bank remains fully committed towards its customers, shareholders, people, and larger society," he said.
Highlighting the rise of digital transactions, an investor presentation report made at the general assembly said 90% of all cash transactions are performed through ATMs bulk cash deposit machines and ITMs (Interactive Teller Machines).
The bank witnessed "significant" growth in E-Commerce as the online payment gateway (OPG) number of transactions increased 71% on an annualised basis in 2022.
Moreover, the lender witnessed local fund transfers improve from 75% to 78% and international fund transfer improve from 44% to 55% year-on-year in 2022.
Sheikh Fahad said the bank enhanced and strengthened its financial position; and achieved an impressive return on average shareholders’ equity and average assets.