(MENAFN - Gulf Times) Dukhan Bank Board of Directors recommends 10% cash dividend distribution to shareholders for 2020
Dukhan Bank's "net operating profits" exceeded QR1bn with a growth rate of 33%, while its assets grew significantly by 12% to more than QR86bn in 2020. Dukhan Bank last night announced its financial results for 2020, which concluded with 'strong positive indicators across all fronts.
The group's assets grew significantly by 12% exceeding QR86bn, underscored by a growth in its financing activities which exceeded 12.7% recording over QR58bn as compared to 2019.
Total revenues grew by 15.7% to reach QR3.8bn, while profit before loss of impairment of intangible assets and taxes exceeded QR1bn, with a growth rate of 33%, compared to QR766mn for the previous year.
Total expenses declined by 15.6% to QR939mn compared to the previous year stemming from the group's efforts to control operating and financing expenses.
In view of the Covid-19 pandemic and its impact on financial markets, as well as accounting for the performance of select economic sectors, including some of the bank's subsidiaries, Dukhan Bank management adopted a conservative approach to hedge for the uncertain circumstances.
Thus, following a conservative assessment on the part of the management, the group recorded a QR450mn decline in its intangible assets from subsidiaries acquired between 2009 and 2010.
The charge was recorded in the income statement for this year, which accounted for a decrease in the net profit reaching QR566mn, however, noting that the decline does not affect the level of liquidity or adequacy of the Group's capital nor its operating results.
Commenting on the results, Dukhan Bank chairman and managing director Sheikh Mohamed bin Hamad bin Jassim al-Thani stated.
'At Dukhan Bank, we are proud of what we have achieved this year. Stemming from a strong resilience, we have not only managed to deal with the challenges imposed by the pandemic but has also achieved unprecedented growth at all levels. This is in part from the adoption of a conservative business model which allows hedging for any defaults that might arise in the financing and investment portfolio in line with the instructions of the Central Bank.
'Additionally, the Group has looked into provisioning models which would match the uncertainty imposed by crisis, like the pandemic, and implement the best international practices to enable the Group to cope with any negative conditions in the future. Moreover, the Group has been able to overcome the impact of the decline in intangible assets due its conservative approach in evaluating subsidiary companies and leveraging the QR600mn contingency reserve, accumulated in previous years, to manage the circumstances.
'Moving on, the Board recommends distributing cash dividends amounting to 10% of the nominal value of the shares to shareholders for the year 2020. We are fully confident that the Group will continue its impressive performance in the coming years.
Sheikh Mohamed added, 'The most prominent event of this year for Dukhan Bank was the unveiling of its new identity, which marked the beginning of a banking journey to make Dukhan Bank ‘Qatar's bank of choice'. Within its endeavours to confirm this position, the new identity comes in light of major positive transformations witnessed by the bank alongside ambitions to digitise its services and operations in providing operational efficiency and profitability as well as secure, safe and seamless banking experience for customers.
'Furthermore, Dukhan Bank aspires to provide innovative banking products and services that meet customers' evolving needs using the latest technological innovations in this field. Therefore, Dukhan Bank takes confident steps towards achieving strategic objectives in a way which enhances its position in the banking sector, grows its market share, and contributes to achieving the goals of the Qatar National Vision 2030.
Group CEO Khalid Yousef al-Subeai said, 'Following the completion of the first merger in the Qatari banking sector in record time, we were able to realise benefits from the merger in terms of cost reduction, with the cost-to-income ratio dropping to 27.6% compared to 39.2% for 2019. The Group has succeeded in widening its customer base and market share, which reflects positively on its performance and financial results.
Al-Subeai also highlighted the bank's flexibility in overcoming the impacts of Covid-19. Dukhan Bank has fully coordinated with the authorities concerned in the country to respond to the aftermath of the crisis. The bank activated an extensive crisis management plan in addition to strengthening its portfolio of online banking services.
'These steps enabled business continuity, allowing customers to conduct all their banking transactions easily and conveniently from their homes without the need to visit any of the bank's branches.
'Moreover, Dukhan Bank participated in the launch of the Covid-19 National Guarantee Programme under the directive of the Qatar Central Bank to alleviate the financial pressures on private companies and small and medium sized enterprises.
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