By Pratap John
Chief Business Reporter
Barwa Bank’s issued capital will rise to QR3bn from QR1.9bn following shareholder approval for a rights issue.
Sheikh Mohamed addressing Barwa Bank’s extra ordinary general meeting
Additionally, the bank’s authorised capital will be increased to QR6bn from QR2.5bn.
The vote followed an address to the shareholders at the Barwa Bank extra ordinary general meeting by chairman Sheikh Mohamed bin Hamad bin Jassim al-Thani as he highlighted the progress made by the bank over the last year.
Explaining the reasons for the additional capital, Sheikh Mohamed said, “Regulators world-wide are increasingly focused on capital adequacy at financial institutions. We are keen that we demonstrate a high level of financial strength, both in our domestic market and abroad. Additional capital allows us to provide for the needs of Qatar’s largest companies, an important consideration as we move onto the development and construction programmes outlined in Qatar National Vision 2030.”
Sheikh Mohamed said Barwa Bank will have six branches by the year-end. Early this year, the bank had just one branch. It has now a network of some 35 ATMs in convenient locations across Doha.
Sheikh Mohamed also mentioned the acquisition of IBQ’s Al Yusr retail business, Barwa Bank’s website launch and major advances in the bank’s corporate business with a number of key business deals with leading Qatar companies.
He also spoke on the recruitment of many qualified staff and experts in Islamic banking as well as the bank achieving a 37% Qatarisation ratio among its employees. The bank, he said, has established more than 70 relationships as a partner for small and medium enterprises (SMEs).
Presenting the roadmap for the next five years, Sheikh Mohamed said the plan will focus on increasing revenue for shareholders through selective expansion in retail and corporate Shariah-compliant banking services in Qatar. The bank’s strategy is to gain strength from the Qatari economy and its potential growth opportunities.
The Barwa Bank Group will also focus on expanding its wealth management, investment and advisory portfolios through its investment arm: The First Investor.
“This year has been all about putting Barwa Bank on the map and a great deal of hard work has gone into establishing the bank as a credible competitive force in the Qatar financial services market-place. We feel that we now have genuine momentum and can build upon this year’s achievements,” Sheikh Mohammed said.
Barwa Bank registered a profit of QR164mn in nine months up to September compared with QR1.4mn in the same period last year.
Its finance and investment portfolio was up 158% and reached QR11bn in September, while total assets stood at QR15.5bn in September, a 96% increase over the previous year.
The earnings per share (EPS) improved to 85 dirhams from 0.02 earlier.
