Commercial Bank's investment in Alternatifbank (ABank) helps it to harness the significant long-term growth potential of the Turkish market and growing trade flows between the Gulf and Turkey, said managing director Hussein Ibrahim Alfardan.
"Our bank is going forward strongly," Alfardan said last night when a Commercial Bank shareholder expressed concerns at the current unrest in Turkey.
"Don't listen to any rumours; we have acquired a stake in Alternatifbank to diversify our growth potential," Alfardan said while addressing shareholders at the bank's ordinary and extraordinary general meeting last night.
In a statement to shareholders he said, "Our profit level was affected by our decision to make prudent, higher provisions for a small number of loans and our strategic acquisition of ABank in Turkey.
"During our long journey and since incorporation, we have experienced moments filled with unexpected surprises and obstacles, which we couldn't have overcome if it wasn't for God's grace, and the efforts of the board members who have collaborated to maintain the leading role the organisation has played in supporting the national economy and the Qatari society as a whole.
"The board has expressed and shared visions and opinions, which was and still is, much appreciated by the whole banking sector in Qatar and by our valued shareholders. Today, we must pay tribute to HE Abdullah bin Khalifa al-Attiyah, Commercial Bank chairman, and thank him for the efforts and commitment he has made to execute his role and fulfil his responsibility during the time he served as chairman. We regretfully understand his decision not to run again for the position due to personal reasons. Al-Attiyah has proved full commitment towards the responsibilities of this huge role.
"I must also thank Khalifa Abdullah al-Subaey, board member representing Qatar Insurance Company, and Sheikh Ahmed bin Nasser bin Faleh al-Thani, board member representing the Nasser Bin Faleh Al Thani Group, for the extraordinary efforts made to build the foundations and rules of many internal policies."
Reading out al-Attiyah's speech, Commercial Bank Qatar CEO Abdullah al-Raisi said, "The global economic momentum of the second half of 2013 is carrying into 2014 and with our additional funding and our clear strategy, we see significant opportunity across our businesses in Qatar, the UAE, Oman and Turkey to continue delivering profitable growth.
"Commercial Bank made clear progress in the execution of its strategy during 2013. We continued to invest in our Qatari business to build and deliver alternative sources of income.
"Partnership with our alliance banks - United Arab Bank (UAB) and the National Bank of Oman (NBO), continued to deliver strong performances for the Commercial Bank Group.
To diversify our growth potential, in July 2013 we acquired a majority stake in Alternatifbank in Turkey," he said.
Al-Attiyah said Commercial Bank was again a significant supporter of the Qatar National Vision as its lending and financial services helped investment across a range of sectors essential to Qatar's economic growth and development.
Meanwhile, at the extraordinary general meeting approved increasing the bank's capital by 20%, from QR2.47bn to QR2.96bn, by issuing bonus shares to shareholders on the basis of one new share for every five shares held.
At the ordinary general meeting, the shareholders approved the Commercial Bank board of directors' recommendation to distribute a cash dividend of 20% of the share's nominal share value to shareholders for 2013, which translates into QR2 per share.
The bank's board of directors for the next three years has also been elected at the ordinary general assembly meeting.
© Gulf Times 2014
