Last checked at 22 Apr 2015 13:11
For immediate release
Commercial Bank of Qatar Financial Results
Commercial Bank's first quarter profit rises to QAR 462.5 million
http://www.rns-pdf.londonstockexchange.com/rns/0089L_-2015-4-22.pdf
22 April 2015, Doha, Qatar: The Commercial Bank of Qatar Q.S.C. ("Commercial Bank" or "the Bank") and its subsidiaries and associates announced today its financial results for the quarter ended 31 March 2015. The Bank delivered a net profit of QAR 462.5 million for Q1 2015. Net profit increased by 19.5% compared to QAR 387 million achieved in the fourth quarter of 2014. At the operating profit before provisions level, profit is up by 4.3% to QAR 551.7 million as compared to the first quarter of 2014. However, due to higher provisioning, the Q1 2015 represents a 15.7% decrease in profitability compared to same period in 2014.
Key financial highlights compared to same period in 2014
· Net operating income up 1.8% to QAR 952.2 million
· Operating profit before provisions up by 4.3% to QAR 551.7 million
· Net profit down by 15.7% to QAR 462.5 million
· Total assets up 1.8% to QAR 116.1 billion
· Customer loans and advances up 4.7% to QAR 71.9 billion
· Customers' deposits down 0.6% to QAR 61.7 billion
His Excellency Sheikh Abdullah bin Ali bin Jabor Al Thani, Chairman of the Board of Directors of Commercial Bank said, "Qatar's economy continues to diversify in line with the Qatar National Vision 2030. Commercial Bank's results for the first quarter of 2015 reflect the changing dynamics of Qatar's economy, with robust growth being generated from the private sector. The successful execution of Commercial Bank's strategy across its operations in Qatar, Turkey, UAE and Oman has resulted in a strong set of financial results for the first quarter of the year."
Financial Performance
Mr. Hussain Alfardan, Commercial Bank's Vice Chairman and Managing Director, added, "Commercial Bank has made a good start to the year 2015 at the operating level. The first quarter has seen a solid performance from Commercial Bank, a good quarter from ABank and continued profit growth from our Associate banks in the UAE and Oman. These performances have enabled Commercial Bank to deliver a quarterly profit of QAR 462.5 million."
Net operating income increased by 1.8% to QAR 952.2 million for the quarter ended 31 March 2015, up from QAR 935.7 million achieved in the same period in 2014. ABank delivered net operating income of QAR 173.3 million for the quarter ended 31 March 2015 which represents 18.5% of the total net operating income.
Net interest income was QAR 625.5 million for the quarter ended 31 March 2015, 0.8% higher than the same period of 2014, reflecting the growth in lending. ABank contributed QAR 148.7 million, 23.8% of the total net interest income. Net interest margin decreased to 2.59% as compared to the first quarter of 2014 at 2.70%
Non-interest income was up by 3.7% to QAR 326.7 million for the quarter ended 31 March 2015 compared with QAR 315 million for the same period in 2014. The increase in non-interest income was due to higher net fees and commission income.
Total operating expenses were down by 1.6% to QAR 400.5 million for the quarter ended 31 March 2015 compared with QAR 406.9 million for the same period in 2014.
The Bank's net provisions for loans and advances were QAR 170.2 million for the quarter ended 31 March 2015, up from QAR 50.8 million for the same period in 2014, a low level of provisioning compared to historic levels. The non-performing loan ratio marginally increased to 3.89% at 31 March 2015 compared with 3.8% at the end of December 2014 and the coverage ratio increased to 76.8% as at 31 March 2015 compared to 74.3% as at December 2014.
Commercial Bank delivered a balance sheet growth of 1.8% at the end March 2015 with total assets at QAR 116.1 billion, compared to QAR 114 billion at the end of March 2014. Balance sheet growth was driven mainly by an increase of QAR 3.3 billion in lending to customers and QAR 2.3 billion due from banks, partly offset with a decrease of QAR 2.4 billion in investments.
Loans and advances to customers were up by 4.7% to QAR 71.9 billion at 31 March 2015 compared with QAR 68.7 billion at the end of March 2014. The growth in lending since March 2014 has been generated, mainly, in the retail, services, government and commercial sectors
Investment securities were down by 16.1% to QAR 12.5 billion at 31 March 2015 compared with QAR 14.9 billion at the end of March 2014. The reduction in investment securities is mainly due to the maturity and sale of Government bonds in the last quarter of 2014.
Customers' deposits reduced by 0.6% to QAR 61.7 billion at 31 March 2015, compared with QAR 62.1 billion as at 31 March 2014.
Mr. Abdulla Saleh Al Raisi, Commercial Bank's Chief Executive Officer, commented, "The results of the first quarter of the year have been driven by a number of factors. In Qatar, we saw strong growth in lending, particularly in the private sector. Turkey has generated a good performance for the quarter and our Associate banks, UAB and NBO, delivered 9% profit growth. Net interest margin has remained firm at 2.59% despite competitive pressure, and we have managed our expenses tightly, with our quarterly cost to income ratio down to 38% from 40% year-on-year. Provisions for the first quarter are in line with the levels we have seen over the past several quarters. The strength the Bank has witnessed inthe first quarter has continued into the beginning of the second quarter, and we are optimistic about Commercial Banks's opportunities for profitable growth this year."
Subsidiary in Turkey
Net profit for Alternatifbank ("ABank") has decreased by 19.8% in the quarter ended 31 March 2015 to TL 27.1 million, compared with TL 33.8 million for same period in 2014. The results were impacted due to large one-off recoveries in the first quarter of 2014.
Net operating income has increased by TL 14 million to TL 129.6 million, for the period ended 31 March 2015 from TL 115.6 million for the same period in 2014. ABank has grown its customer lending by 19.7% to TL8.6 billion and customers' deposits increased by 14.8% to TL 5.8 billion compared with 31 March 2014.
Associates in the UAE and Oman
National Bank of Oman and United Arab Bank have achieved a strong financial performance for the quarter ended 31 March 2015 with a 8.5% improvement in profitability as compared to the same period 2014.
National Bank of Oman
National Bank of Oman ("NBO") achieved a net profit of OMR 12.6million for the quarter ended 31 March 2015 as compared to OMR 10.3million for the same period in 2014, an increase of 22.4%. Net operating income grew by OMR 5.2 million to OMR 31.5 million, from OMR 26.3 million in the same period 2014, mainly due to an increase in net interest income which was up 17.2% to OMR 22.4 million. As at 31 March 2015, NBO grew its customer lending by 14.2% to OMR 2.4 billion and customers' deposits reduced by 13.8% to OMR 2.4 billion as compared to the same period in Q1 2014.
United Arab Bank
United Arab Bank ("UAB") delivered a net profit of AED 161.5 million for the quarter ended 31 March 2015 as compared to AED 161.3 million over the same period in 2014.The net operating income for the quarter ended 31 March 2015 increased by 7.8% to AED 352million, from AED 326.5 million in Q1 2014 with solid underlying performance from both Net Interest Income and Non-Interest Income, up 10.2% and 1.1% respectively, as compared to the same period in 2014. UAB's loans and advances increased by 1.7% to AED 18.3 billion as at 31 March 2015, with customers' deposits at AED 18.3 billion, down by 1.9% as compared to Q1 2014.
- ENDs -
For more information please contact:
Ibrahim Al Emadi Jon Earl
Head of Corporate Communications Managing Director
Commercial Bank F T I Consulting
Tel: +974 4449 4748 Tel: +971 (0) 50 494 1178
Email: Ibrahim.alemadi@cbq.qa Email: jon.earl@fticonsulting.com
Notes to Editors
About Commercial Bank
Commercial Bank has total assets of QAR 116.1 billion as at 31 March 2015. As a full service commercial bank, the Bank offers a full range of corporate, retail and investment banking services as well as owning and operating exclusive Diners Club franchises in Qatar and Oman. The Bank's countrywide network includes 29 full service branches and 154 ATMs.
Profitable every year since incorporation in 1974, continual investment in technology and human capital, together with a strong capital base, provides a solid foundation for continued growth. A successful diversification strategy has expanded Commercial Bank's GCC footprint through strategic partnerships with associated banks, the National Bank of Oman (NBO) in Oman and United Arab Bank (UAB) in the UAE. NBO, the second largest bank in Oman with total assets of OMR 3 billion as at 31 March 2015, has 61 conventional branches and 4 Islamic branches in Oman and 1 branch each in Egypt, Abu Dhabi and Dubai. UAB is headquartered in Sharjah, with total assets of AED 26.5 billion as at 31 March 2015, and operates 31 branches across the emirates in the UAE. Building on the successful execution of the Bank's expansion strategy to date, Commercial Bank completed the acquisition of a majority stake in Alternatifbank in Turkey in July 2013.
Commercial Bank enjoys strong credit ratings of (A) from Fitch, (A1) from Moody's and (A-) from Standard & Poor's. The Bank is listed on the Qatar Exchange and was the first Qatari bank to list its Global Depository Receipts (GDRs) as well as bonds on the London Stock Exchange. Commercial Bank's Swiss Franc bond issuance in December 2010, listed on the SIX Swiss Exchange, was the first public bond issuance by a Qatari bank in Switzerland. Commercial Bank's latest bond issuance in June 2014 is listed on the Irish stock exchange.
The Bank is dedicated to supporting Qatar's community and social infrastructure through Corporate Social Responsibility programmes and sponsorship of various events. Title sponsorship of the Commercial Bank Qatar Masters and the Grand Prix of Qatar Moto GP reflects the Bank's promotion of excellence in sports and its keen interest in enhancing Qatar's international sporting reputation. To reinforce Qatar's flourishing cultural environment, Commercial Bank is the strategic partner of the Katara Cultural Village. This collaboration symbolises the Bank's commitment to supporting cultural activities in Qatar and making the country a regional arts and cultural hub.
www.cbq.qa
About Alternatifbank (ABank)
ABank was established in 1991 and has been listed on the Istanbul Stock Exchange since 1995. Commercial Bank became the majority shareholder in ABank in 2013 holding a 74.24% stake, following the acquisition of ABank shares of 70.84% from the Anadolu Group and 3.40% through a public tender offer. A squeeze out has been initiated to increase shareholding to 75%. Anadolu Group remains a significant shareholder retaining 25% of shares in ABank.
ABank is a mid-size Turkish bank that predominately serves medium-sized companies through a country-wide network of 64 branches in 21 cities. ABank provides commercial/corporate banking services and products, with a special focus on the growing segment of Small and Medium-Sized Enterprises. The Bank's main product ranges cover trade finance instruments, working capital finance, cash management, and portfolio management.
At 31 March 2015, ABank had total assets of TL 12.4 billion, total loans stood at TL 8.6 billion, customer deposits of TL 5.8 billion and shareholders' equity of TL 987 million.
http://wwweng.abank.com.tr