Doha, Qatar: The Commercial Bank, its subsidiaries and associates (“Group”) announced yesterday its financial results for the quarter ended 31 March 2024. The Group reported a net profit of QR801.6m representing a 6.7% increase as compared to last year’s reported net profit of QR751.3m for Q1 2023, which was restated to QR577.3m for the same period in 2023.

We have restated the Q1 2023 numbers due to the restatement of the year-end 2023 financial statements for the underlying derivative on the share option performance scheme. Accordingly, the current Q1 2024 figures provided are compared with the previous year restated numbers.

Sheikh Abdulla bin Ali bin Jabor Al Thani, Chairman of the Board of Directors of Commercial Bank, said, “In the first three months of 2024, Commercial Bank maintained consistent progress. The confirmation of our upgrade in Fitch rating from ‘A-’ to ‘A’ with a stable outlook, underscores our strong domestic franchise and stable operating environment.

Building on our 2023 accolades for innovation, Commercial Bank was designated by Edaa as the first bank in Qatar to manage the dividends distribution for listed companies in line with the National Vision of providing services by digital means, and we reaffirm our dedication to bringing technology to contribute to Qatar’s digital future.”

Hussain Ibrahim Alfardan, Commercial Bank’s Vice Chairman, said, “We are pleased to report on Commercial Bank’s continued positive progress in the first quarter of 2024, reflecting the positive momentum of the Qatari economy and our consistent focus on operational excellence. Our financial performance was maintained in a scenario of muted loan growth due to elevated interest rates, demonstrating our ability to adapt to our customers’ evolving needs and develop new business streams.

Commercial Bank has successfully issued a $750m Regulation S 5-year Bond which was oversubscribed by 2.4 times. This marks our return to the public international capital markets after a three-year gap. The overwhelming demand for this transaction underscores the strength of our credit and the demand for Qatari institutional paper among international investors.

Looking ahead, we remain committed to solidifying Commercial Bank’s position as a leading banking institution in the region. We look forward to another year filled with significant milestones, all aimed at supporting the growth and prosperity of Qatar’s economy.”

Operating profit for the Group increased by 18.9% to QR1,012.5m for the quarter ended 31 March 2024 compared with QR851.8m achieved in the same period in 2023.

Net interest income for the Group decreased by 3.0% to QR957.7m for the quarter ended 31 March 2024 compared with QR987m achieved in the same period in 2023. The overall decrease is mainly due to higher cost of funding in the market, due to increase in deposit cost.

Non-interest income for the Group decreased by 4.2% to QR291.7m for the quarter ended 31 March 2024 compared with QR304.4m achieved in the same period in 2023. The overall decrease in non-interest income was mainly due to reduced FX and trading income.

The Group balance sheet has increased by 2.0% as at 31 March 2024 with total assets at QR166.2bn compared with QR163bn in March 2023. The increase was mainly due to increase in due from banks.

Joseph Abraham, Commercial Bank’s Group Chief Executive Officer, commented, “During the first three months ended 2024, Commercial Bank continued to demonstrate a stable and sustainable performance while making further progress on our five-year strategic plan, resulting in solid financial results. This success is notably underscored by Fitch’s upgrading of our rating to ‘A’ with a stable outlook.

“The Group’s net interest income for Q1 2024 saw a decrease of 3%, to reach QR957.7m, down from QR987m in Q1 2023, due to higher cost of funding in the market. The decrease is attributable to the decrease in asset levels as the loans and advance declined by 4.7%.

“The overall fees and other income decreased by 4.2% to QR291.7m, compared to QR304.4m in Q1 2023. This was mainly driven by reduced FX and trading income.

“The Group’s cost-to-income ratio improved to 19.0% during the period on the account of improved operating expenses, compared to 34.0% in Q1 2023. This reduction in expenses was largely attributed to decreased staff related LTIP compensation costs, a consequence of IFRS 2 due to the decline in share price.

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