The lender has recommended 30%, or QR3, per share cash dividend to be approved by shareholders at the annual general assembly meeting scheduled on March 7.
“This is another outstanding result and is clear demonstration that Doha Bank continues to perform consistently,” Doha Bank chairman Sheikh Fahad bin Mohamad bin Jabor al-Thani said.
The bank increased its total assets by QR7.8bn, a growth of 10.3%, from QR75.5bn as at December 31, 2014 to QR83.3bn as at December 31, 2015.
Net loans and advances increased to QR55.6bn in 2015 from QR48.6bn in 2014, registering a growth of 14.5%. Net interest margins stood at 2.61% as at December 31, 2015.
Deposits showed a year-on-year increase of 14.8% from QR45.9bn in 2014 to QR52.8bn as at December 31, 2015 which is “evidence of the strong liquidity position of the bank”, the lender said.
“Overseas operation accounts for 20% of the balance sheet,” Doha Bank Group chief executive officer R Seethraman said, adding the bank has consistently delivered sustainable performance.
Doha Bank managing director Sheikh Abdul Rehman bin Mohamad bin Jabor al-Thani said the lender continues to perform well with total equity, as at December 2015, at QR13.3bn, an increase of 17.4% compared with the previous year.
“Through the efficient asset allocation model, the return on average shareholders’ equity is 16.1% as at December 2015 one of the best in the industry,” he said.
The bank has achieved a very high return on average assets of 1.73% as at December 2015, which is a “clear demonstration of the effective utilisation of shareholder’s funds”, he added.
“The bank’s core revenue streams have shown strong growth over the prior year period reflecting on the bank’s intrinsic strength towards recurring earning capacity and also on the bank’s productive operational performance,” Sheikh Abdul Rehman said.
Doha Bank’s solid result in this challenging market scenario, portray its commitment to maximising shareholder value, the bank said. This was possible largely due to the bank’s strategy to adapt to changing market and economic dynamics through innovation, diversification and capitalising on market synergies.
The bank’s capital adequacy ratio stood at 15.7% and its non-performing loans ratio was 3.26% for which there was a 109% provision coverage, Seetharaman said, adding the bank’s cost-to-income ratio was 36.7% as at December 2015.
“Despite the difficult market conditions, Doha Bank recently managed to secure a $575mn syndicated unsecured loan at an attractive pricing and was oversubscribed by $75mn. Furthermore, Doha Bank completed its issuance of an additional Tier 1 capital instrument amounting to QR2bn,” Seetharaman said.
He said the bank is reorganising the business model in 2016 to enhance productivity and will also redefine asset classes in order to optimise the balance sheet.
On raising further capital to support its expansion, he said it was very much on cards but will take a call at an appropriate time when conditions are conducive.
He said depending on the conditions and subject to approval of regulators, some of the representative offices it has will be converted into full-scale branches.
In line with its international expansion strategy, Doha Bank inaugurated its 12th representative office in South Africa, completed the amalgamation formalities of the India operations of HSBC Bank Oman and inaugurated its India operations in April 2015.