Doha Bank, Qatar’s third largest bank, today said that braving a challenging economic environment, the bank posted robust results for 2009-2010 fiscal with net profit rising by 8.3 per cent to QR 1.05 billion compared to QR 975 million in the previous corresponding period.
In a statement after a General Assembly Meeting held on February 27 2011, the bank said that the strong performance was catalysed by the resilience of Qatari economy and the result of the hard work of the executive management team. It said that the bank’s performance came in the backdrop of “fierce competition in the market and the continuing effects of global financial crisis that rocked the various capital markets worldwide.”
The bank’s Chairman, Mr. Fahad bin Mohammed bin Jaber Al Thani, said: “The strength and durability of the Qatari economy, in addition to Qatar being the host nation of the World Cup in 2022, we are anticipating that Qatar will witness an unprecedented boom across all economic sectors and the launch of many development projects in the coming years, which will be positively reflected in the Bank's performance level and lead to additional achievements.”
He said that bank’s growth was a reflection of Qatar’s economic prowess under the “the wise leadership of His Highness, Sheikh Hamad Bin Khalifa Al Thani - The Emir of Qatar. He said that the growth prospect of the economy is a major reason why in December 2010 the bank approved an amended strategy for 2011 and 2012 in line with growth expectations.
As a support to the bank’s growth strategy, Doha Bank also received a 10 per cent additional contribution to its capital from the Qatar Investment Authority in January 2011. On the financial front, Doha Bank achieved high growth results across all key indicators, with total assets rising to QR 47.2 billion, an increase of 2.7 per cent.
The bank’s total portfolio of loans and advances increased by 2.5 per cent and the total customer deposits grew by 10.5 per cent. Shareholders’ equity rose to QR 6 billion, a growth of 3.1 per cent. “These robust results translated into strong performance ratios and in-particular the return on average shareholders’ equity which was 21.4 per cent and the return on average assets was 2.26 per cent, the Chairman said.
The bank’s Islamic banking products and services contributed significantly to its growth and total assets of Doha Islamic reached QR 3.8 billion, total financing activities reached QR 2.8 billion, and the total net profit of Doha Islamic reached QR 111.5 million. Doha Islamic also launched additional advanced products and services and developed the existing ones in 2010.
In terms of the three year strategic plan, the bank implemented effective risk management strategies locally and globally. In addition, there was an emphasis on attracting Qatari nationals and enhancing the level of performance through hiring highly qualified and experienced bankers and the delivery of tailored training programs for all levels. The plan also included strengthening the governance framework within the Bank and providing state-of the-art banking services and products in-particular e-banking and implicit marketing of services.
The bank continued its endeavor to strengthen its financial position through diversifying the assets while maintaining highest level of efficiency in operational performance, and achieving sustainable growth in the Bank’s core income and diversifying income and in particular non interest income, as well as adopting and controlling leading cost management in a professional manner and maintain it within the levels that are in line with the banking sector industry, and optimizing the cost of financing.