Doha Bank has reported a 3% rise year-on-year in net profit to QR1.05bn in the first nine months of this year. “This is another outstanding result and is a clear demonstration that Doha Bank continues to perform consistently,” its chairman Sheikh Fahad bin Mohamed bin Jabor al-Thani said. The lender increased net operating income by 6% to QR2.2bn. Total assets expanded by more than 9% to QR92.4bn at the end of September 30, 2017. Net loans and advances increased by 6% year-on-year to QR59bn in the first nine months of this year, while customer deposits showed an increase of 8% to QR52.5bn, which is an evidence of the strong liquidity position of the bank.
Sheikh Fahad, Sheikh Abdul Rehman and Seetharaman: Outstanding results, consistent performance.
“The bank has become extremely strong over the years with total equity, as on September 30, 2017, at QR15bn, registering an increase of 11.7% during the last twelve months,” according to Sheikh Abdul Rehman bin Mohamed bin Jabor al-Thani, Doha Bank’s managing director. Through the strategic utilisation of the shareholder’s funds by way of increasing the performance levels, the return on average shareholders’ equity stood at 14.1% during the review period, one of the best in the industry, he said. The bank, given the scale of operations, has achieved a very high return on the average assets of 1.53% at the end of September 30, 2017, which is a clear demonstration of the effective utilisation of shareholder’s funds and optimum asset allocation strategies, he added.
“Doha Bank’s strong results once again highlights the strength of its products and services, ongoing customer demand, capitalising on market synergies in a challenging and competitive environment, resilient economy and strong banking fundamentals in Qatar,” its group chief executive Dr R Seetharaman said. During the year, Doha Bank successfully completed the capital increase by way of rights issue as well as distributed 30% cash dividend to the shareholders for the year 2016. Seetharaman said Doha Bank is in the final stages of launching the QE Index ETF (QETF). The QETF, which will track the 20-stock Qatar Index, has Amwal and Group Securities as fund manager and liquidity provider respectively.
In May, Doha Bank said the ETF will carry a fee or expense ratio of 0.5%, one of the lowest in emerging markets offerings. Seetharaman had earlier said Qatar has the potential for $10bn to $15bn overseas funds inflow since its upgrade into emerging market. During the quarter, Doha Bank launched non-resident Indians (NRI) home loan and wealth management product, ‘Estate Planning’ through Warmond preceded by ‘Doha Miles’, its new loyalty programme. In line with the bank’s continuing re-alignment of its domestic branch network, Doha Bank inaugurated its new branch at the Mall of Qatar, opened another at the Doha Festival City in addition to relocating the Airport branch.
The long-term (local and foreign currency) credit ratings of Doha Bank as well as Doha Bank Assurance Company were re-affirmed and removed from credit watch by Standard & Poor’s in recognition of its ability to maintain strong growth trajectory. This was preceded by Moody’s reaffirming Doha Bank’s rating at ‘A2’, and Capital Intelligence reaffirming the bank’s financial strength rating and the long-term foreign currency rating.