Tribune News Network
Doha
The Commercial Bank has announced that the Group reported a net profit of QR1,571 million in the first half 2024 as compared to last year’s reported net profit of QR1,554.3 million for H1 2023 which was restated to QR1,352.5 million for the same period in 2023, representing a 1.1 percent increase on a reported basis and a 16.2 percent increase on a restated basis.
The H1 2023 numbers were restated due to the restatement of the year-end 2023 financial statements for the underlying derivative on the share option performance scheme. Accordingly, the current H1 2024 figures provided are compared with the previous year restated numbers.
Commenting on the results, Commercial Bank Chairman Sheikh Abdulla bin Ali bin Jabor Al Thani said,” In the first half of 2024, Commercial Bank demonstrated strong performance despite the global banking sector’s challenges. Forbes once again recognised us among the “Middle East’s 30 Most Valuable Banks 2024. Additionally, Fitch affirmed our rating at ‘A’ with a stable outlook.”
“Our unwavering commitment to technology and innovation has enabled us to provide exceptional services that enhance the customer experience. During this period, we received the “Best Mobile Banking App” and the “Best Remittance Service” awards from the MEED – MENA Banking Awards 2024, reflecting our dedication to outstanding customer service,” he said.
Commercial Bank Vice Chairman Hussain Alfardan said, “We are pleased to report Commercial Bank’s performance in the first half of 2024, reflecting the strength of the Qatari economy and our steadfast commitment to operational excellence.
We are dedicated to maintaining Commercial Bank’s position as a leading banking provider in the region, continuing to contribute to the ongoing growth and prosperity of Qatar’s economy, and supporting our customers and stakeholders in achieving their financial goals.”
Operating profit for the Group was QR1,922.1 million for the six months ended 30 June 2024 compared with QAR 1,911.0 million achieved in the same period in 2023.
Net interest income for the Group was QR1,866.7 million for the six months ended 30 June 2024 compared with QAR 1,935.0 million achieved in the same period in 2023, due to higher cost of funds.
Non-interest income for the Group was QR626.0 million for the six months ended 30 June 2024 compared with QR760.3 million achieved in the same period in 2023, due to reduced FX and trading income.
Total operating expenses were QR570.6 million for the six months ended 30 June 2024 compared with QR784.3 million in the same period in 2023.
The Group’s net provisions fell to QR426.9 million for the six months ended 30 June 2024, from QR575.5 million in the same period in 2023, due to higher recoveries and ECL release. Non-performing loan (NPL) ratio stood at 5.9 percent on 30 June 2024 compared to 5.5 percent at 30 June 2023.
The Group’s balance sheet as on 30 June 2024 was at QR160.8 billion.
The Group’s loans and advances to customers has increased by 3.4 percent to QR92.1 billion at 30 June 2024 as compared to QR89 billion in June 2023, mainly due to increased government & public sector borrowings and retail lending.
The Group’s customer deposits increased by 1.4 percent during the year to QR77.2 billion at 30 June 2024, compared with QR76.1 billion in the same period in 2023.
Commercial Bank Group Chief Executive Officer Joseph Abraham said, “Throughout the first half of 2024, Commercial Bank continued to execute on our five-year strategic plan, we continue to focus on shaping our business as a leader in client experience and digital innovation, resulting in positive financial performance for the period ending 30 June 2024.As loan growth continued to show positive momentum reflecting the strong pipeline, Capital also continued to improve to 17.2 percent in line with our guidance and we will continue to focus efforts in the second half of the year to continue this positive momentum.”
The Group witnessed an improvement in its cost-to-income ratio, reaching 22.9 percent, compared to 29.1 percent in the first half of 2023. This reduction in expenses was largely attributed to decreased staff related LTIP compensation costs, a consequence of IFRS 2 due to the decline in share price.
