Commercial Bank Group posted a first quarter (Q1) net profit of QR 702.3 million, up 16.5% from the same period in 2021.
Group customer loans and advances in the first quarter totaled QR 98.4 billion, down 1% (QR 99.4 billion) from March 2021, but up 0.4% from March 2021. to December 2021.
The decrease is mainly due to the conversion of the Turkish lira into Qatari riyal. Excluding the currency effect, the underlying loans increased by 1% despite the repayment of the temporary overdraft by the government.
The bank’s customer deposits stood at QR 84.5 billion in the first quarter, up 3.3% from March 2021 and 3.2% from December 2021.
The increase was mainly in low-cost deposits, which increased by 10.9% due to various cash management initiatives and digital products offered by the bank.
The Group’s balance sheet increased by 5.1% as of March 31, 2022 with total assets of QR 171.5 billion, compared to QR 163.1 billion in March 2021. This increase is mainly due to the increase in balances with central bank and investment securities.
Commercial Bank Chairman Sheikh Abdulla bin Ali bin Jabor al-Thani said: “Qatar has continued to show resilience in overcoming the challenges faced by global economies over the past two years, while maintaining its title as one of the region’s strongest and most promising economies. economies, globally.
Hussain Alfar, Vice President of the Commercial Bankdan added: “With the upcoming FIFA World Cup, Commercial Bank has continued to invest in enhancing its digital service offering, to ensure seamless banking for all of our existing and new customers. perspective, Commercial Bank has been recognized by several organizations for its leadership position in banking innovation.
“In March 2022, Commercial Bank shareholders approved raising the threshold for non-Qatari ownership in the Bank’s capital to 100%, a step that will further improve the attractiveness of the stock market in the country. Qatar and Commercial Bank shares while the 100 Percent Foreign Ownership (FOL) is often a requirement for many investment funds to enter a market and invest.
Commercial Banking Group net provisions for loans and advances increased by 11.2% to QR 236.2 million for the quarter ended March 2022 from QR 212.5 million for the same period in 2021.
The increase in provisions is mainly due to continued prudent provisioning on NPL customers.
The non-performing loan (NPL) ratio increased from 4.2% in March 2021 to 4.6% as of March 31, 2022, but decreased from 4.7% in December 2021.
The loan coverage ratio decreased to 100.2% in March from 105.9% in March 2021, but increased from 97.4% in December 2021.
Commercial Bank Group Chief Executive Joseph Abraham said, “I am pleased to report a strong start to the year as our financial performance for the first quarter demonstrates the strong execution of our strategy.
“The group recorded a consolidated net profit of QR 702.3 million for the period, up 16.5% from the same period last year, driven by improved net interest income.
“The Group’s net interest income for the first quarter of 2022 increased by 11.4% to QR 953.8 million compared to the same period last year. This increase is explained by the effective management continued cost of financing and improvement in interest income.
“Total normalized fees and other income in the first quarter of 2022 was QR 262.4 million, an increase of 13.8% compared to the same period last year, driven by an increase in foreign exchange and trading income. Overall operating profit increased by 11.9%.
“Normalized operating expenses decreased by 6.1%, reflecting strong jaws and positively on the cost/income ratio, which fell to 22.5% from 26.8% in the same period last year. latest. Consequently, operating profit in the first quarter of 2022 increased by 18.6% to QR 942.5 million compared to the same period last year.
“The National Bank improved its normalized cost-income ratio to 20.4% from 22.2% for the same period last year as the bank continues to focus on improving revenues and improving efficiency.
“Net provisions are in line with guidance provided on the cost of risk as we continue our conservative provisioning approach.
“Group loans and advances amounted to QR 98.4 billion in the first quarter of 2022, down 1% from the same period a year earlier. This is mainly due to a reduction in government and public sector lending due to the strong fiscal position and also currency conversion movements in Turkey. Excluding currency adjustments, loans still increased by 1%.
“Customer deposits increased to QR 84.5 billion, up 3.3%, driven by low-cost deposits, which increased by 10.9%. The Commercial Bank fully complies with the new loan-to-deposit ratio published by the Central Bank of Qatar.
“Alternative Bank’s performance in the first quarter of 2022 showed improved profitability. The bank reported a net profit of QR 34.4 million during the period, compared to a net loss of QR 20.7 million for the same period in 2021.
“The impact of our associate share in 2022 improved by 70.6% compared to 2021, mainly due to the improved performance of our associate banks, National Bank of Oman and United Arab Bank. expect our associate banks to continue to improve their performance and contribution during the year.