Dukhan Bank, a leading Shariah-compliant lender, is "aggressively" going to the market as it finds immense scope, especially for the wholesale banking in view of the country undertaking expansion in its hydrocarbons sector, according to a top official.
Highlighting that the bank has undertaken a prudent strategy since the merger of Barwa Bank and International Bank of Qatar (IBQ), Dukhan Bank acting chief executive officer Ahmed Hashem said the strategy has been to grow the asset base, increase the profitability and maintain the cost and it has been successful in the past three years.
The bank's assets have historically grown at 20% per annum, total income by 11%, net financing by 13% and net profit by 25% at the end of 2021. It achieved 90% cost synergies during the first year after merger and 100% before the second year of merger, according to the bank’s financial statement.
"We are (now) heading to next level. We are aggressively going to the market," he told the media on the sidelines of Dukhan Bank's listing on the Qatar Stock Exchange.
Finding greater room for growth in the wholesale banking sector, he said it was because of the various projects announced by the government, especially the North Field Expansion (NFE), through which Qatar plans to increase liquefied natural gas production to 126mn tonnes per annum from the present 77mn tonnes.
The bank's strategy is to expand the wholesale banking with focus toward higher value added sectors. Its wholesale banking business contributed 39% to the total income during the third quarter (Q3) ended 2022. The segment, which has corporate banking and government and institutional banking, constituted 65% of net fee and commission income, 37% of total assets and 68% of net profit during Q3, 2022.
Hashem said the bank is also "ambitious" on the retail side, which constitutes 25% of the bank's net profitability during Q3, 2022. The retail and private banking – which comprises financings, deposits, wealth management and advisory – constituted 42% of net financing and investment earnings and 37% of assets at the end of Q3, 2022.
Dukhan Bank’s prudent risk management continues to monitor asset quality and take prudent impairments as its provision coverage improved to 64.8% during Q3, 2022 against 52.3% in 2020.
“As we believe in the importance of investing in the future, Dukhan Bank adopts an ambitious vision, promotes digital transformation, and specialises in customer-centric services,” Hashem said.
Ahmed Hashem, Dukhan Bank acting CEO
