(MENAFN- The Peninsula) The Peninsula
Doha: Dukhan bank has reported net profit of QR1.193bn for the year ended December 31, 2021. The bank's robust financial performance during the year has resulted in its total assets to increase to QR110.7bn, representing a significant growth of more than 28 percent as compared to last year driven by growth under the financing assets and investment securities. Notably financing assets continued to grow to QR75.2bn at end of December 31, 2021 from QR58.5bn at December 31, 2020, representing a remarkable growth of 29 percent.
Further customers' deposits balance raised to QR77.4bn at end of 2021, which mainly supported the assets growth, increased considerably by 44 percent compared to QR53.9bn as at December 31, 2020.
The bank's total equity soared to QR14bn from QR11.5bn at end of December 2020 whereas the total capital adequacy ratio stands at 18.4 percent as of 31 December 2021, in accordance with the Basel III guidelines, maintaining a sufficient buffer above the minimum supervisory ratio as specified by Qatar Central Bank and Basel Standards. Dukhan Bank's strong asset liability management capabilities enabled it to improve its financing to deposits ratio to under 98 percent from above 100 percent at end of 2020 reflecting the improvement in the Bank's overall liquidity position.
The total income for the year increases to QR4.05bn resulting in a growth of 7 percent compared to QR3,788m during 2020, while net operating income reached to the level of QR2.068bn as compared to QR1.974bn marking a year-on-year growth of 5 percent. The Bank's drive for operational efficiency coupled by strong revenue sources has helped Dukhan Bank to improve cost to income ratio from 28 percent to 27 percent during the year as well.
Reflecting on the strong performance, Dukhan Bank's Board of Directors proposed a dividend distribution to shareholders of QR1.4 per share or 14 percent of the nominal share value up from QR1 per share or 10 percent of the nominal share value last year, subject to approval of general assembly meeting of the shareholders.
Moreover, the Bank has been affirmed rating of 'A' by Fitch Ratings, and“A2/Prime-1” with a stable outlook by the international rating agency Moody's.
Reflecting on Dukhan Bank's strong financial performance in 2021, Sheikh Mohammed bin Hamad bin Jassim Al Thani, Chairman & Managing Director, commented:“Despite the on-going global market uncertainties, Qatar's banking sector remains robust with rising profitability and strong capitalization.
Dukhan Bank has successfully navigated through the ongoing economic environment generating a significant 17 percent year-on-year growth in net profits (2020 Net income before goodwill impairment of QR450m).
“Supported by assets of QR110bn, we began 2022 with a robust strategy to propel the bank upward to even greater heights. Building on the progress already achieved, Dukhan Bank is determined to generate stronger returns for our shareholders while simultaneously ensuring a superior banking experience for all our customers,” he said.
“It is important to thank Amir H H Sheikh Tamim bin Hamad Al Thani for the outstanding role he plays in the development and security of Qatar. It is due to the effective leadership of H H the Emir and the government of Qatar that Dukhan Bank is able to achieve such remarkable growth and success,” he added.
Khalid Al Subeai, Dukhan Bank CEO, said:“The major elements of Dukhan Bank's outstanding performance and continued growth lies in the bank's relentless pursuit of advanced technologies and innovations that empower our customers. This allows the bank to adopt the latest technologies to transform the digital products and service offered to customers. Dukhan Bank has consistently aimed to improve the customers' experience, build trust and increase loyalty by developing multiple banking channels that answer their myriad needs easily and conveniently.”
Confirming its position as the leading digital bank in Qatar, Dukhan Bank introduced a number of new and innovative digital products and services during 2021 that provide added value for customers.
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