(MENAFN- The Peninsula)
The Peninsula
Doha, Qatar: The Commercial Bank, its subsidiaries and associates (“Group”) announced yesterday its financial results for the half year ended 30 June 2024. The Group reported a net profit of QR1,571.0m as compared to last year's reported net profit of QR1,554.3m for H1 2023 which was restated to QR1,352.5m for the same period in 2023, representing a 1.1% increase on a reported basis and a 16.2% increase on a restated basis.
The H1 2023 numbers were restated due to the restatement of the year-end 2023 financial statements for the underlying derivative on the share option performance scheme. Accordingly, the current H1 2024 figures provided are compared with the previous year restated numbers.
Sheikh Abdulla bin Ali bin Jabor Al Thani, Chairman of the Board of Directors of Commercial Bank, said,“In the first half of 2024, Commercial Bank demonstrated strong performance despite the global banking sector's challenges. Forbes once again recognized us among the“Middle East's 30 Most Valuable Banks 2024.” Additionally, Fitch affirmed our rating at 'A' with a stable outlook.
Our unwavering commitment to technology and innovation has enabled us to provide exceptional services that enhance the customer experience. During this period, we received the“Best Mobile Banking App” and the“Best Remittance Service” awards from the MEED – MENA Banking Awards 2024, reflecting our dedication to outstanding customer service.
Hussain Alfardan, Commercial Bank's Vice Chairman, said,“We are pleased to report Commercial Bank's performance in the first half of 2024, reflecting the strength of the Qatari economy and our steadfast commitment to operational excellence.
We are dedicated to maintaining Commercial Bank's position as a leading banking provider in the region, continuing to contribute to the ongoing growth and prosperity of Qatar's economy, and supporting our customers and stakeholders in achieving their financial goals.”
Operating profit for the Group was QR1,922.1m for the six months ended 30 June 2024 compared with QR1,911.0m achieved in the same period in 2023.
Net interest income for the Group was QR1,866.7m for the six months ended 30 June 2024 compared with QR1,935m achieved in the same period in 2023, due to higher cost of funds.
Non-interest income for the Group was QR626m for the six months ended 30 June 2024 compared with QR760.3m achieved in the same period in 2023, due to reduced FX and trading income.
Total operating expenses were QR570.6m for the six months ended 30 June 2024 compared with QR784.3m in the same period in 2023 mainly due to decreased staff related LTIP (long term incentive program) costs under IFRS 2.
The Group's net provisions fell to QR426.9m for the six months ended 30 June 2024, from QR575.5m in the same period in 2023, due to higher recoveries and ECL release. Non-performing loan (NPL) ratio stood at 5.9% at 30 June 2024 compared to 5.5% at 30 June 2023.
The Group's balance sheet as at 30 June 2024 is at QR160.8bn.
The Group's loans and advances to customers has increased by 3.4% to QR92.1bn at 30 June 2024 as compared to QR89bn in June 2023, mainly due to increased government & public sector borrowings and retail lending.
The Group's customer deposits has increased by 1.4% during the year to QR77.2bn at 30 June 2024, compared with QR76.1bn in the same period in 2023.
Joseph Abraham, Commercial Bank's Group Chief Executive Officer, commented,“Throughout the first half of 2024, Commercial Bank continued to execute on our five-year strategic plan, we continue to focus on shaping our business as a leader in client experience and digital innovation, resulting in positive financial performance for the period ending 30 June 2024. As loan growth continued to show positive momentum reflecting the strong pipeline, Capital also continued to improve to 17.2% in line with our guidance and we will continue to focus efforts in the second half of the year to continue this positive momentum.
The Group witnessed an improvement in its cost-to-income ratio, reaching 22.9%, compared to 29.1% in the first half of 2023. This reduction in expenses was largely attributed to decreased staff related LTIP compensation costs, a consequence of IFRS 2 due to the decline in share price.
Our associates have demonstrated a strong performance, which grew by 8.9% increase in share of associates, reaching QR158.2m compared to QR145.3m in the same period of 2023.
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