26 April 2016
DOHA: The Commercial Bank (Q.S.C.) delivered a net profit of QR274m for Q1 2016 compared to QR462m recorded in Q1 2015. The bank's net profit increased by 177 percent in Q1, 2016 from QR93m posted in Q4 2015.

The total assets of the bank rose 6.2 percent to QR123.3bn from a year ago. Customer loans and advances rose by 5 percent to QR75.5bn as compared to Q1, 2015.

Announcing the financial results of the bank and its subsidiaries, Sheikh Abdullah bin Ali bin Jabor Al Thani, Chairman of the Board of Directors of Commercial Bank, said: "Despite the current economic conditions, Commercial Bank continues to benefit and support sustainable growth of the economy of Qatar as it diversifies under the guidance of our wise leader, Emir H H Sheikh Tamim bin Hamad Al Thani. Growth prospects for the economy remain strong, as the government maintains its public infrastructure investment, supported by government borrowing and significant fiscal reserves."

On the bank's key achievements during Q1, 2016, he said the bank completed in February a QR2bn transaction in Additional Tier 1 Perpetual Capital Notes to strengthen capital adequacy ratios and support funding future growth across its domestic bank, subsidiaries and associates.

Commercial Bank also added to its nationwide network by opening a new branch in the strategic location of Al Wakrah, a location connecting the city of Doha and Messaied - one of the oldest oil and gas centres in Qatar. The newly revamped building is located on Al Wakrah's main street and has been rebuilt to create a modern, state-of-the-art banking centre for the people of Al Wakrah, offering customers Retail, Corporate and, Sadara Privileged Banking services at the branch. The Bank continued its strategy to adopt innovative technologies to continually improve business capabilities that benefit customers by installing a new, state-of-the-art banknote processing machine - another 'first of its kind' for any bank in Qatar.

During Q1, 2016, Commercial Bank signed an MoU with a Mexican development bank providing a framework for future collaboration for projects in Qatar involving Mexican enterprises, or for projects in Mexico involving Qatari enterprises.

The bank continued actively supporting the Qatar National Vision 2030 agenda during the first quarter of the year. Qatari nationals aged 16 to 19 completed the Bank's annual Youth Leadership Acceleration Programme in partnership with HEC Paris, a programme designed to develop human capital in line with the National Vision 2030.

Hussain Alfardan, Commercial Bank's Vice Chairman and Managing Director, said,: " Our business in Qatar has shown improvement compared to the previous quarter, as we target the opportunities of an increasingly diversified economy. Although economic conditions remain challenging, we continue to see opportunity in the short and long-term for Commercial Bank."

Net operating income was lower by 2.5 percent at QR929m for the Quarter ended 31 March 2016 as compared to the achieved in same period in 2015. ABank delivered net operating income of QR98m for the Quarter. The Bank's net provisions for loans and advances were QR 259.1m for the quarter ended 31 March 2016, up 52 percent.

© The Peninsula 2016