DOHA: The Commercial Bank of Qatar or Commercial Bank, delivered a net profit of QR1.55bn for the nine months of 2014, a 19 percent increase in profitability compared to the equivalent nine months of 2013.
On a quarterly basis, Commercial Bank generated net profit of QR503m in the third quarter 2014, an increase of 79 percent compared to the third quarter 2013.
Commercial Bank Chairman Sheikh Abdullah bin Ali bin Jabor Al Thani said, “Qatar’s economy continues to grow robustly despite a slowing global economy. The most recent GDP growth figures of 5.7 percent for the country demonstrate Qatar’s resilience as the country diversifies its economy, generating an increasing share of revenue from non-hydrocarbon sectors. Commercial Bank has benefited during the period from the successful execution of its strategy across its operations in Qatar, Turkey, the UAE and Oman and we remain confident in our full year performance.”
Commercial Bank’s Vice Chairman and Managing Director Hussain Al Fardan added, “The third quarter has seen a solid performance from Commercial Bank, a strong year-on-year performance from ABank and continued consistent profit generation from our Associates in the UAE and Oman. These performances have enabled Commercial Bank to deliver a 79 percent year-on-year increase in quarterly profit from QR281m to QR503m.”
Net operating income increased by 22 percent to QR2.95bn in the nine months of 2014, up from QR2.41bn achieved in the same period in 2013. ABank delivered net operating income of QR626m for the nine months of 2014 an increase of 11 percent over the same period in 2013.
The net provisions for loans and advances were QR378m for the nine months ended September 30, 2014, up from QR368m provided in the same period for 2013. The non-performing loan ratio has reduced to 3.71 percent at September 30, 2014 compared with 3.82 percent at the end of June 2014 and the coverage ratio has increased to 68.3 percent as at September 2014 compared to 67.3 percent in June 2014.
Impairment provisions on the Bank’s investment portfolio reduced to QR43m for the nine months ended 30 September 2014 compared with QR77m for the same period in 2013.
Loans and advances to customers were up by 9 percent to QR70.7bn at September 30, 2014 compared with QR64.9bn at the end of September 2013. The growth in lending since September 30, 2013 has been generated, mainly, in the government, contracting, real estate and retail sectors. Loans and advances to customers of QR12.7bn at ABank were included.
Investment securities were down by 4.5 percent to QR13.6bn compared with QR14.3bn at the end of September 2013.
The Peninsula
