Doha Bank posts QR395mn Q1 profit; assets at QR57.2bn

Doha Bank has posted a net profit of QR395mn in the first quarter of 2013, up 1.4% on the same period in 2012.

The bank’s loans and advances grew by 14.9% to reach QR34.4bn in March compared with QR30bn in Q1 last year, results announced by Doha Bank chairman Sheikh Fahad bin Mohamed bin Jabor al-Thani indicate.

Total assets grew by QR4.5bn, a growth of more than 8.4%, from QR52.8bn in March 2012 to QR57.2bn in March 2013. Customer deposits reached QR33.2bn in the first quarter from QR31.4bn in the same period last year, registering a growth of 5.9% and evidencing the bank’s strong liquidity position.

Doha Bank managing director Sheikh Abdul Rehman bin Mohamed bin Jabor al-Thani said, “The bank has become extremely strong over the years with shareholders’ funds amounting to QR8.5bn as on March 31, registering an increase of 28.8% during the last twelve months.

“Through the strategic utilisation of the shareholder’s funds by way of increasing our performance levels, the return on average equity was 21.2% in March, one of the best in the industry. The bank, given the scale of operations, has achieved a very high return on the average assets of 2.81% in the first quarter, which is a clear demonstration of the effective utilisation of shareholder’s funds and optimum asset allocation strategies”.

Doha Bank group chief executive officer Dr R Seetharaman said, “Continuing with our significant achievements in 2012, the first quarter of 2013 was successful in meeting and exceeding customer expectations, and maintaining our leadership in terms of performance, innovation, security and quality.” Doha Bank has successfully completed the 25% capital increase through the right’s issue of QR1.55bn. The bank’s existing shareholders, who were registered at the Qatar Exchange, subscribed to these additional shares at a rate of QR30 per share representing a premium of QR20 in addition to a nominal value of QR10 per share. The issue was oversubscribed by 1.8 times. This capital increase will enhance the shareholders’ equity base and support the bank’s prospects for achieving its strategic goals at the local, regional and global levels, the bank said.

Earlier during the general assembly, 45% cash dividend was approved and distributed to the shareholders accordingly.

On the launch of innovative products, Seetharaman said, “Doha Bank has launched Tadbeer, a cash management solution for its corporate clients. Tadbeer is an integrated cash management software platform addressing a full range of collections, payment, liquidity management and reporting services.

“Doha Bank’s cash management solutions also include an innovative service called “SecureDoc”, which is a door-to-door document and cheque collection service that will accept cheques, including post-dated instruments, for deposit into the client’s account. Similarly, the bank’s “SecureCash” collection service helps large volume cash businesses such as retail stores with a door-to-door collection service for all cash deposits. These two collection services are available across Qatar.”

Seetharaman said Capital Intelligence (CI) has affirmed Doha Bank (DB)’s financial strength rating at ‘A’. The rating agency has assigned a positive rating (upgraded from stable) on Doha bank’s foreign currency outlook. The affirmation of ratings and the positive outlook reflects the bank’s very strong retail franchise, growing international network, improving asset quality, strengthening capital adequacy and sound profitability, the bank said.

“We will continue to innovate, outperform, delight our customers, and explore new frontiers both locally and internationally, with a drive to excel, and a promise to ensure our valued customers and stakeholders that there is always so much to look forward to,” Seetharaman added.