Commercial Bank is looking to jumpstart 2019 by issuing around A$200mn to A$250mn ‘kangaroo’ bonds in the next coming months, according to Group CEO Joseph Abraham.
But Abraham was quick to clarify that issuing the ‘kangaroo’ bonds, a first for Commercial Bank in Australia, in the first or second quarter of 2019 would depend on investor appetite.
“It’s the first time we are issuing, so we’ll have to see the appetite,” said Abraham in a media roundtable on Tuesday, adding that the ‘kangaroo’ bonds forms part of the bank’s strategy to diversifying funding by size, tenor, and geography.
In terms of raising funds, Abraham said Commercial Bank has a number of diversified providers of funding. “One thing that we have importantly done is creating more diversification in our funding profile,” he said.
During the meeting, Abraham also gave a positive outlook for Qatar in 2019, citing several indicators like GDP growth, budget surplus, rising global demand for LNG, and continued investments in Qatar, among others.
He also noted that Qatar’s upgraded rating to ‘stable’ in 2018 “only goes to show that the country’s risk premium has improved.”
“When we met international investors, we found that their perception of Qatar and the risk appetite was strong…the risk perception of investors towards Qatar and its banks, including Commercial Bank, is even more positive and we will raise funding as demand requires,” he said.
On Commercial Bank’s success in 2018, Abraham credited this to the bank’s execution of its five-year strategic plan, which was first introduced in 2016. Under this plan, Commercial Bank’s vision is to be the ‘Best Bank in Qatar’ recognised for its five Cs: corporate earnings quality, client experience, creativity and innovation, culture, and compliance.
In 2019, Abraham stressed, Commercial Bank will continue to drive innovation in Qatar’s banking sector. He said the bank seeks to become a world-class leader in banking creativity and innovation in 2019 through all areas of the business, pointing to Commercial Bank’s advances in the application of digital technology and in its transaction banking services as evidence of innovation.
In digital banking, Commercial Bank expanded its 60 Seconds Remittance service in 2018, reaching over 1mn transactions. The first-of-its-kind service allows customers in five countries to transfer money in under one minute through the Commercial Bank Retail Internet Banking and Mobile Banking App. The bank recently launched transfer services to the UK in five minutes and to 21 countries in Europe within one day.
In transaction banking, Commercial Bank made several important developments in 2018, including the introduction of the Corporate Mobile App, which allows corporate customers to manage all payments and enquiries online.
Through the Commercial Bank Innovation Service (CBIS), the bank applied robotics technology to improve many transaction banking processes. In December 2018 alone, the bank recorded 350,000 transaction banking payments – a 43% increase compared to December 2017.
“In transaction banking for example, we see great potential in the market for innovative services. Because of our commitment to applying digital technology to improve the customer experience, we believe that we can bring enhanced products and services to the transaction banking market in Qatar,” Abraham said.
Commercial Bank Group recorded a QR1.66bn net profit in 2018, a 175.5% increase compared to 2017. The group’s operating profit was QR2.3bn, up by 5.9%, and its cost-to-income ratio was 33.4%, reduced from 37.5%.
Commercial Bank CFO Rehan Khan said the bank’s net profit increase of more than QR1bn in 2018 was driven by "lower credit provisioning and lower operating expenses."
Hussein Ali al-Abdulla, EGM, chief marketing officer, said the increase in net profit was "driven by the reduction" in loan provisioning compared to the previous year. Operating profit was supported by a strong focus on efficiency, with the benefits of digitisation also flowing through to the income statement.
“It’s the first time we are issuing, so we’ll have to see the appetite,” said Abraham in a media roundtable on Tuesday, adding that the ‘kangaroo’ bonds forms part of the bank’s strategy to diversifying funding by size, tenor, and geography.
In terms of raising funds, Abraham said Commercial Bank has a number of diversified providers of funding. “One thing that we have importantly done is creating more diversification in our funding profile,” he said.
During the meeting, Abraham also gave a positive outlook for Qatar in 2019, citing several indicators like GDP growth, budget surplus, rising global demand for LNG, and continued investments in Qatar, among others.
He also noted that Qatar’s upgraded rating to ‘stable’ in 2018 “only goes to show that the country’s risk premium has improved.”
“When we met international investors, we found that their perception of Qatar and the risk appetite was strong…the risk perception of investors towards Qatar and its banks, including Commercial Bank, is even more positive and we will raise funding as demand requires,” he said.
On Commercial Bank’s success in 2018, Abraham credited this to the bank’s execution of its five-year strategic plan, which was first introduced in 2016. Under this plan, Commercial Bank’s vision is to be the ‘Best Bank in Qatar’ recognised for its five Cs: corporate earnings quality, client experience, creativity and innovation, culture, and compliance.
In 2019, Abraham stressed, Commercial Bank will continue to drive innovation in Qatar’s banking sector. He said the bank seeks to become a world-class leader in banking creativity and innovation in 2019 through all areas of the business, pointing to Commercial Bank’s advances in the application of digital technology and in its transaction banking services as evidence of innovation.
In digital banking, Commercial Bank expanded its 60 Seconds Remittance service in 2018, reaching over 1mn transactions. The first-of-its-kind service allows customers in five countries to transfer money in under one minute through the Commercial Bank Retail Internet Banking and Mobile Banking App. The bank recently launched transfer services to the UK in five minutes and to 21 countries in Europe within one day.
In transaction banking, Commercial Bank made several important developments in 2018, including the introduction of the Corporate Mobile App, which allows corporate customers to manage all payments and enquiries online.
Through the Commercial Bank Innovation Service (CBIS), the bank applied robotics technology to improve many transaction banking processes. In December 2018 alone, the bank recorded 350,000 transaction banking payments – a 43% increase compared to December 2017.
“In transaction banking for example, we see great potential in the market for innovative services. Because of our commitment to applying digital technology to improve the customer experience, we believe that we can bring enhanced products and services to the transaction banking market in Qatar,” Abraham said.
Commercial Bank Group recorded a QR1.66bn net profit in 2018, a 175.5% increase compared to 2017. The group’s operating profit was QR2.3bn, up by 5.9%, and its cost-to-income ratio was 33.4%, reduced from 37.5%.
Commercial Bank CFO Rehan Khan said the bank’s net profit increase of more than QR1bn in 2018 was driven by "lower credit provisioning and lower operating expenses."
Hussein Ali al-Abdulla, EGM, chief marketing officer, said the increase in net profit was "driven by the reduction" in loan provisioning compared to the previous year. Operating profit was supported by a strong focus on efficiency, with the benefits of digitisation also flowing through to the income statement.