Moody's Investor Service, the International Rating Agency reaffirmed Doha Bank's Foreign Currency Deposit Ratings as "A2 / P-1" and the Bank's Financial Strength Rating (BSFR) at D+ with a Stable Outlook. Moody's rating reaffirmation recognizes the bank's good financial performance and its well-established franchise in Qatar. The ongoing improvement in the domestic operating environment has also helped the banking sector in which Doha Bank is a major player. The ratings also factored the management's focus on retail banking that and the improvement in the quality and stability of earnings. The rating agency further observed that Doha Bank has a satisfactory liquidity management while its market risk appetite is assessed as moderate.
Doha Bank's liquid assets accounted for 34% of the total assets and the bank's Capital Adequacy Ratio at 14.8% as at the end of Sept. 2008 which was well above the regulatory minimum of 10%. As per Moody's the improved asset quality, the maintenance of healthy interest margins and the expected continued good profitability ratios in the short to medium term supported the continuance of the existing ratings accorded to the bank by the rating agency.
Sheikh Fahad Bin Mohammed Bin Jabor Al-Thani, Chairman of the Bank expressed that the affirmation of the ratings by Moody's clearly reconfirms the solid franchise and the strong financial fundamentals of Doha Bank to meet the ever-growing requirements of its customers both in the local and the international market.
Doha Bank as at 30th September 2008 recorded an increase in the total assets from QR 30 Billion to QR 37.5 Billion, while the deposits have increased to QR 23.76 Billion from QR 20.03 Billion. The bank posted a Net Profit of QR 833.83 Million as at 30th September 2008 up 23% on the same period last year. The Return on Average Equity was 27.48% and the Return on Average Assets of the bank as at 30.9.2008 was 3.29% The bank's Earnings Per Share (EPS) increased to QR 5.03 compared with QR 4.31 in the corresponding period last year.
Moody's further noted that the ratings captures the bank's well-established franchise in Qatar and its good financial performance underpinned by adequate capitalization, good profitability levels and an overall comfortable liquidity position. Moody's opined that changes which the bank has recently put in place regarding its risk management framework would further positive results in the future.
Sheikh Abdul Rehman Bin Mohammed Bin Jabor Al Thani, the Managing Director of Doha Bank added that in line with the Board's vision to expand internationally, Doha Bank is committed to taking further action to expand its international presence in those countries which have trade links with the GCC in general and Qatar in particular. The bank successfully opened its branch in Kuwait and its Representative Offices in London and Seoul (South Korea) recently.
