Commercialbank studying prospects for expansion

By Pratap John/Chief Business Reporter

Commercialbank is studying the prospects of further expanding both within Qatar and abroad, said managing director Hussein Alfardan.

In Qatar, Commercialbank is considering Lusail, which is under development.

“We do have land in a strategic location in Lusail…and we will go there once the ultra modern city develops,” Alfardan said in reply to a shareholder’s query at the Commercialbank general assembly meeting last night.

He said the bank was studying the prospects of getting into Turkey.

“We are already in the UAE through the United Arab Bank and in Oman with NBO.”

He said the bank’s business strategy had seen “it protecting core business in 2012, growing domestic corporate and retail businesses and delivering alternative sources of income”.  

The bank remains both well capitalised and funded with the capital adequacy ratio (CAR) at 17% as on December 31, 2012, well above the Qatar Central Bank’s required minimum level of 10%.

The bank’s total assets increased by 12% to QR80bn in December 2012 compared with QR71.6bn in 2011.

Lending to customers were up 17% (QR6.9bn) to QR48.6bn in December 2012 compared with QR41.7bn in December 2011.

The growth in lending in 2012 has been generated in both the corporate and retail businesses. The bank’s non-performing ratio got reduced to 1.09% in 2012, Alfardan said.

Qatar’s economy, he said was expected to continue to grow in 2013.

“I look forward with confidence that Commercialbank is well positioned to play a central role in Qatar’s ongoing economic development and build on its strengths to target growth in the years ahead,” Alfardan said.

He also expressed his sincere appreciation for the visionary and inspirational leadership of HH the Emir and HH the Heir Apparent for promoting Qatar economy during continued difficult times in the global financial markets.

Alfardan also thanked HE the Prime Minister, HE the Minister of Economy & Finance, and HE the QCB governor for their guidance and support throughout the year.

Commercialbank shareholders last night approved the Board of Directors’ recommendation to distribute a cash dividend of 74% of the net profit for 2012 to shareholders, which equates to QR6 per share.

They also approved the board recommendation to appoint KPMG for auditing the bank’s accounts in 2013 after obtaining no-objection from Qatar Central Bank.

Alfardan said KPMG was chosen from among three bidders and for the reason that the firm was already auditing Commercialbank’s associates – the United Arab Bank and National Bank of Oman.

“We have done this in the interest of the Commercialbank Group and will obtain all the required approvals,” Alfardan added.

Pledge to back small enterprises

 Commercialbank has laid focus on supporting and nurturing small and medium enterprises in line with the government identifying local SMEs as a vital component in Qatar’s economic future, said chairman HE Abdullah bin Khalifa al-Attiyah yesterday. Commercialbank, he said, was helping these businesses through its Enterprise Business, which was launched in early 2012.