Barwa Bank has reported a net profit of QR738.8mn, while earnings-per-share rose to QR2.49 in 2016.
The bank – which along with International Bank of Qatar and Masraf Al Rayan  is on a potential merger talks to create the second largest lender in the country – has recommended 13.5% cash dividend to be approved by shareholders at an annual general assembly scheduled on February 27.
The financing portfolio increased by 4.5% year-on-year to QR29.8bn. The group’s total assets expanded 2% to QR46bn and customer deposits increased significantly by 17.7% to QR29.9bn, showing customers’ confidence in the bank due to its innovative and large range of products and superior customer service.
“These results demonstrate the strength of the group and its financial position and strategy. In spite of the difficult and challenging conditions being faced throughout the region due to a tightening of liquidity, Barwa Bank Group focused on the balanced growth of the finance and investment portfolios, with the objective of maintaining the quality of assets, improving performance efficiency and increasing shareholders’ returns,” Barwa Bank chairman and managing director Sheikh Mohamed bin Hamad bin Jassim al-Thani said.
Khalid al-Subeai, group chief executive, said Barwa Bank Group continued its strong performance evidenced by an increase of 16.4% in revenues to more than QR2bn. This was accomplished by relying on the diversification of income sources and growing its customer base, he added.
“The growth was combined with a balanced risk management policy - the non-performing loans accounted for just 1.5% of the net financing portfolio – which is a reasonable level given global indicators,” according to al-Subeai.
Highlighting that the bank was able to improve operational efficiency and cut expenses by 5.6% in 2016, he said to reduce funding costs; secure mid-to-long-term funding and bridge the maturity gap, an equivalent of QR2.2bn was raised through sukuk-based financing, which effectively contributed to strengthening financial position of the group.
In line with its efforts to expand and increase its footprint, Barwa Bank has opened its City Center branch ensuring better customer service and achieving a balanced geographic spread across Doha.