Doha Bank has reported net profit of QR307mn in the first three months (Q1) of this year.
“The bank has made significant progress in improving the cost management and efficient utilisation of resources where the operating cost for the period decreased by 10.8% as compared to same period last year, thus reducing the cost to income ratio to 35.7% from 37.3% showing bank’s productive operational performance,” said Doha Bank chairman Sheikh Fahad bin Mohamed bin Jabor al-Thani.
The bank’s total assets expanded 3% year-on-year to QR96.3bn at the end of March 31, 2019 with net loans and advances at QR58.7bn; while customer deposits stood at QR54.5bn.
The bank, given the scale of its operations, has achieved a return on the average assets of 1.28% at the end of March 31, 2019.
The total financial investment portfolio increased by QR5.9bn, showing a significant growth of 32.3% compared to the same period of the last year.
Sheikh Fahad highlighted that the (year-on-year) decline in net profit (in Q1, 2019) was due to Doha Bank’s focus on strengthening the provisions base by taking significant loan loss provision compared to the same period last year, which enhanced the provision coverage for non-performing loans.
He pointed out that interest income grew 3.9% on a yearly basis.
Sheikh Abdul Rehman bin Mohamad bin Jabor al-Thani, managing director of Doha Bank, said total shareholders’ equity stood at QR12.9bn at the end of March 31, 2019, registering a growth of 3.7%.
The bank continued to strengthen its key capitalisation ratios, where the total capital adequacy ratio increased to 17.1% at the end of first quarter of 2019 from 16.6% the same period last year.
Sheikh Abdul Rehman said the QE Index exchange traded fund ‘QETF’ achieved a total return of 20% in 2018, outperforming most ETFs in the world.
“This achievement is the culmination of untiring efforts of various parties who contributed to the QETF’s success in its first year of operations...We believe the QETF holds immense promise and opens a gateway to the Qatari market for global investors,” Doha Bank group chief executive Dr R Seetharaman said.
Despite challenging market conditions, Doha Bank has been able to capitalise on market synergies in a challenging and competitive environment, he said, adding the bank continued to successfully leverage on its international network to diversify its funding sources and expanded its exposure to key sectors.
During the quarter, Doha Bank completed 40 years of operations – a key milestone for the institution. On this front, the bank announced a campaign for its new and existing customers by offering gold rewards.
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