Commercial Bank PSQC, its subsidiaries and associates announced this week the financial results for the year ended 31 December 2019, reporting a net profit of QAR2021 million, an increase of 20.7% compared to QAR1674 million for the same period in 2018.
The Board of Directors proposed a dividend distribution to shareholders of QAR0.2 per share, equivalent to 20% of the nominal share value. The financials and proposed dividend distribution are subject to Qatar Central Bank approval and endorsement by shareholders at the Bank’s Annual General Meeting.
Key Financial highlights for the Group:
- Net profit of QAR2,021 million, up by 20.7%
- Net operating profit up by 34% to QAR3,119 million and net operating income of QAR4,347 million, up by 23.9%
- Cost-to-income ratio of 28.3%, reduced from 33.4%
- Net provisions QAR654 million, down by 21.8%, NPL ratio reduced from 5.6% to 4.9% and coverage improved from 78.6% to 82.1%
- Total assets of QAR147.5 billion, up by 9.3%
- CET1 improved from 10.5% to 11.1% and total CAR improved from 15.5% to 16.4%
- Customer loans and advances of QAR88.0 billion, up 4.0% led by growth in government and public sectors.
- Best Cash Management Bank in Qatar award for the third year in a row; Best Transaction Banking service in Qatar from The Asian Banker
- Best Retail Bank in Qatar award for the third year in a row; ‘Financial Technology Innovation Award 2019’ for the 60 Seconds Online Remittance service and digital innovations
- Best Corporate Governance in Qatar 2019 award by World Finance.
Sheikh Abdulla bin Ali bin Jabor Al Thani, Chairman of the Board of Directors of Commercial Bank, said the country continues to benefit from accelerating economic growth supported by government policies, in particular the prudent actions taken by the Ministry of Finance and the Qatar Central Bank. The World Bank projected Qatar’s GDP growth to reach to 3.2% in 2020.
Commercial Bank, a leading financial institution in the country, sees great potential to support the government with its economic diversification agenda while also supporting local private enterprises with their banking needs. The bank continues to invest in technology and people to deliver world class financing solutions in Qatar.’
Commercial Bank Vice Chairman Hussain Alfardan said that 2019 has been a record-breaking year for Commercial Bank.
During the year we reshaped our loan book and effectively managed the cost of our deposits supporting a 19.4% growth in net interest income. Our cost base was optimised by digitising our internal processes while we continue to leverage technology to drive the expansion of our transaction and cash management business.
Commercial Bank has built a strong franchise in Qatar with a reputation for innovation and excellent customer service, and we will continue to build on these attributes as we move into 2020.’
Commercial Bank’s Group Chief Executive Officer Joseph Abraham said that the excellent results for the year, including the highest net profit achievement in the history of the bank demonstrates the strong execution of Commercial Bank’s five-year strategic plan.