Chief Business Reporter
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| HE al-Attiyah and Alfardan: strong performance |
In the third quarter, the bank’s net profit was QR552mn, up 8% on Q2, 2011.
Non-interest income grew by 22% to QR831mn in 2011 compared with QR682mn in the same period in 2010 due to higher fee and commission income, an increase in gains on investments and dividend income, as well as improved net income from the Islamic business.
Net fee and commission income was up 15% to QR492mn against 2010 reflecting increased loan-related fees and credit card revenue.
The bank’s total assets increased by 17% to QR70.4bn in September compared with QR60.2bn in the same period last year, and were up 13% from QR62.5bn in December 2010.
The increase in total assets was due to growth in loans and advances to customers and in financial investments.
Loans and advances to customers grew by 24% to QR41.5bn in September compared with QR33.6bn at the end of December 2010, an increase of QR7.9bn.
Financial investments were up by QR2.5bn since the end of December 2010 primarily due to investments of QR2.1bn in Qatar Government bonds.
Customers’ deposits increased by 16% to QR36.9bn in September 2011 compared with QR31.9bn at the end of September 2010 and by 11% since December 2010.
The bank’s capital position remains well above the Qatar Central Bank’s required minimum ratio of 10%, with the capital adequacy ratio at 17.9% as of September compared with 18.5% in 2010-end.
Commercialbank chairman HE Abdullah bin Khalifa al-Attiyah said: “The Qatar economy continues to outperform with strong growth forecast for the full year. The private sector is showing ongoing signs of recovery and we have seen increased activity this year.
“Commercialbank has continued to identify opportunities to grow its business and has delivered a strong set of results; this will remain our ongoing focus.”
On the bank’s nine months’ financial performance Commercialbank managing director Hussain Alfardan said: “Commercialbank has performed strongly in 2011 achieving continued growth in its chosen market segments following the strategic realignment of its corporate and retail businesses. The results demonstrate positive momentum in both revenue and lending growth and we will look to maintain this for the remainder of the year.”
Net interest income rose 6% to QR1.33bn in 2011 compared with 1.25bn for the nine months that ended in September 2010 and was also up by 6% to QR466mn in the third quarter of 2011 against QR442mn in the second quarter.
The progressive reduction in the cost of deposits during 2011 has resulted in competitive pressure on lending pricing which has, in turn, resulted in a reduction in the bank’s net interest margin to 3.5% in 2011 from 3.7% for the same period in 2010.
Commercialbank’s Group chief executive officer Andrew Stevens said: “Commercialbank’s nine months results demonstrate ongoing delivery on our strategy. We have continued to grow our loan book achieving a 24% increase in 2011 compared with the end of last year.
“Market credit demand in both the public and private sectors has increased during the third quarter and we have been able to further the development of our corporate and retail businesses, a testament to the strength of our market positioning.
“The strategic outsourcing partnership has progressed well during the third quarter and we are starting to see improved efficiency and customer service. The alliance banks are focussed on expanding their own domestic franchises and have delivered continued positive quarterly trends in revenue, lending and net profit”, Stevens said.