(MENAFN- The Peninsula) The Peninsula
Doha: The Commercial Bank (P.S.Q.C.) (“the Bank”), its subsidiaries and associates (“Group”) reported a net profit of QR2,811.1m as compared to QAR2,304.3m for 2021.
The Group announced yesterday its financial results for the year ended 31 December 2022. The Group The Board of Directors proposed a dividend distribution to shareholders of QR0.25 per share i.e. 25 percent of the nominal share value.
The financials and proposed dividend distribution are subject to Qatar Central Bank approval and endorsement by shareholders at the Bank's Annual General Meeting.
Key financial highlights for the Group compared to the same period in 2021 · Net profit of QR2,811.1m, up by 22.0 percent.
The bank recorded a normalized operating income of QR5,298.4m, up by 11.0 percent (+3.8 percent on reported basis).
The Operating profit of QR 4,155.9m was up by 14.8 percent.
The normalized cost to income ratio of 21.6 percent (reported 21.5 percent), reduced from 24.1 percent (reported 29.0 percent).
·The bank recorded a strong capital adequacy ratio of 17.3 percent. The net provisions for loans and NPLs up by 7.3 percent mainly on account of continued prudent provisioning.
·The total assets of QR169.1 bn was up by 2.2 percent.
Customer loans and advances remained flat at QR 98.0bn · Customer deposits of QR 83.2bn, up by 1.5 percent.
· S&P upgraded Commercial Bank's rating to A- from BBB+ ·“Bank of The Year” in Qatar for 2022 by The Banker Magazine“Leading Corporate for Investor Relations” award in Qatar by Middle East Investor Relations Association Sheikh Abdulla bin Ali bin Jabor Al Thani (pictured), Chairman of the Board of Directors of Commercial Bank, said,“Our robust financial and operational performance for the year 2022 reflects our clear strategy and the Qatari economy's growth over the last year.
2022 will be remembered for the successful execution of the 2022 FIFA World Cup, proving Qatar's ability to execute flawlessly on world events and draw a global audience, reinforcing its efforts to serve as an international destination for tourism, commerce, sports and culture.
Commercial Bank is privileged to have played a role in the continued development of Qatar's banking sector particularly in the digital space and in servicing its community to the highest degree in 2022. We look forward to another positive year in 2023, in line with the country's projected upward trajectory.”
Hussain Alfardan, Commercial Bank's Vice Chairman, added,“Commercial Bank has seen a strong 2022 affirmed by good growth across our key segments and a healthy bottom-line which was the second consecutive year of record profit achievement. Our performance stems from our five-year strategic plans, very strong execution and Qatar's positive macroeconomic fundamentals, which we expect to continue into the new year.
Our robust efforts on the financial and operational front have resulted in the Bank winning several significant accolades, including“Bank of the Year” in Qatar by The Banker Magazine. We continue to support the Bank's management in their efforts to position Commercial Bank as the leading bank in Qatar and look forward to continuing to realize this vision in 2023.” Operating profit for the Group increased by 14.8 percent to QR4,155.9m for the year ended 31 December 2022, compared with QAR 3,621.1 million achieved in the same period in 2021.
Net interest income for the Group increased by 10.9 percent to QR 4,106.0m for the year ended 31 December 2022 compared with QR3,701.5m achieved in the same period in 2021. Net interest margin increased to 2.8 percent compared with 2.7 percent achieved in the same period in 2021.
The increase in margins is mainly driven by improvement in funding base and repricing of our assets.
Normalized non-interest income for the Group increased by 11.4 percent to QR1,192.4m (-15.1 percent on reported basis) for the year ended 31 December 2022 compared with QR1,069.9m achieved in the same period in 2021.
Although investment income is negative due to market volatility, the overall increase in normalized non-interest income was mainly due to higher FX and trading income.
Normalized total operating expenses decreased by 0.7 percent to QR1,142.5m (-23.1 percent on a reported basis) for the year ended 31 December 2022 compared with QR1,150.3 m in the same period in 2021.
The Group's net provisions for loans and NPLs increased by 7.3 percent to QR1,184.7m for the year ended 31 December 2022, from QR1,104.5m in the same period in 2021.
The increase in provisions was mainly due to continued prudent provisioning on NPL customers. Non-performing loan (NPL) ratio stood at 4.9 percent at 31 December 2022 from 4.7 percent at 31 December 2021, whilst loan coverage ratio strengthened to 105.4 percent at 31 December 2022 from 97.4 percent at 31 December 2021.
The Group balance sheet has increased by 2.2% as at 31 December 2022 with total assets at QAR 169.1 billion compared with QAR 165.5 billion in December 2021. The increase was mainly in due from banks and investment securities.