Qatar-based Commercial Bank has reported a net profit of QR1.301 billion ($353 million) for the year ended December 31, 2020 as compared to QR2.021 billion for the same period in 2019, marking a decline of 35.6%.

The Board of Directors proposed a dividend distribution to shareholders of QR0.1 per share i.e. 10% of the nominal share value.

Key financial highlights

• Operating income of QR4,237.1 million, down by 2.5% (however, up by 9.9% on normalized basis).

• Operating profit of QR3,140.8 million, up by 0.7% (+14.1% on normalized basis).

• Cost to income ratio of 25.9% (normalized 26.0%), reduced from 28.3% (normalized 28.7%).

• Strong capital adequacy ratio of 17.8% compared to 16.4% in 2019.

• Total assets of QR153.6 billion, up by 4.1%.

• Customer loans and advances of QR96.7 billion, up by 9.9%.

Sheikh Abdulla bin Ali bin Jabor Al Thani, Chairman of the Board of Directors of Commercial Bank, said: “Qatar has again demonstrated resilience with its successful management of the COVID-19 pandemic, thanks to the efforts of our leadership and the measures implemented to mitigate the pandemic’s health and economic impact on the country. Consequently, the International Monetary Fund (IMF) has predicted that Qatar’s GDP will grow 2.7% in 2021. The IMF also noted that the country’s prudent budgetary decisions will keep its fiscal gap in check.

“During these challenging times it has been a key priority for Commercial Bank to support the nation’s economy by postponing loan instalments and interest payments, providing corporates and SMEs in affected sectors with concessionary interest rates and participating in the National Response Guarantee programme. Commercial Bank remains committed to using its resources to bring world-class banking solutions and innovative products to Qatar in support of the private sector.”

Hussain Alfardan, Commercial Bank’s Vice Chairman, added: “The implementation of Commercial Bank’s five-year strategic plan has provided us with a strong platform from which to 3 respond to the Covid-19 pandemic. Our investments in technology enabled us to seamlessly transition to working from home during movement restrictions whilst providing our customers with uninterrupted access to our services through enhanced digital services.

“Furthermore, focusing on prudent risk management allowed us to manage our risk profile during these unusual times as recognised by Fitch Ratings which affirmed our ‘A’ long-term issuer default rating with a stable outlook for the Bank.” – TradeArabia News Service

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