Tribune News Network
Doha
The Commercial Bank Group reported a net profit of QR2.341 billion for nine months of 2024 as compared to QR2.365 billion in the same period last year, which was restated to QR2.277 billion. This represents a 1% decrease on a reported basis and a 2.8 per cent increase on a restated basis.
“The result highlights the steady progress made on our path of growth and innovation,” the bank said in a statement.
The nine months 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 nine months 2024 figures provided are compared with the previous year restated numbers.
Sheikh Abdulla bin Ali bin Jabor Al Thani, Chairman, said, “Throughout the first nine months of 2024, Commercial Bank continued to execute its strategic plan, achieving a positive net profit growth.”
“Further, the Bank has made good progress towards its sustainability efforts which is core to Commercial Bank’s strategy in line with the Qatar National Vision 2030 and National Environment and Climate Change Strategy.
“Last month MSCI upgraded Commercial Bank’s ESG rating from BBB to A and we continue to enhance our ESG practices across the Bank in accordance with best international standards.
“We remain committed to a resilient and sustainable financial future.”Hussain Alfardan, Vice Chairman, said, “Commercial Bank has shown steady progress in the first nine months of 2024, supported by Qatar’s economic momentum and our focus on operational efficiency.
“Our disciplined cost management has maintained our cost-to-income ratio to acceptable levels, and growth across key segments reflects our commitment to meeting customer needs.The recent issuance of our inaugural Green Bond, raising CHF 225 million underscores our dedication to sustainable finance and to driving impactful green projects in Qatar.”
Joseph Abraham, Group Chief Executive Officer, commented, “Commercial Bank delivered a resilient performance in the first nine months of 2024, aligning with our strategic objectives and demonstrating positive financial results. We recorded a consolidated net profit of QAR 2,341.2 million, a 2.8% increase year-on-year, driven by lower operating costs, lower net provisions, and improved associate performance.
“Despite a decline in net interest income due to higher market funding costs, our core fee income grew by 10%, reflecting strengthened focus on transaction banking, cards, and wealth management.We continue to optimize our balance sheet, evidenced by a 2.2% increase in total assets.
“Additionally, our strategic capital market issuances, including a successful issuance of CHF 225 million Green Bond, underscore investor confidence in our financial health and commitment to sustainable growth.
“Our capital position remains robust with Common Equity Tier 1 ratio at 13.0% and Capital Adequacy Ratio at 17.8% underlining strong capital accretion as the Bank continues to grow in line with the guidance.
“Looking ahead, we remain committed to executing our long-term strategy and supporting Qatar’s National Vision 2030 through responsible banking and sustainable financing.”
Total assets as at September 30, 2024 reached QR163.2 billion, an increase of 2.2% from September 30, 2023. This is mainly driven by increase in due from banks, where lending to financial institutions have increased.
The loans and advances to customers is at QR90.7 billion, down by 0.5% due to repayments by government and public sector borrowings.
Diversified customer deposits generation helped to increase customer deposits by 3.8% to reach QR77.6 billion from September 30, 2023.
Net profit for the nine months ended September 30, 2024, reached QR2.341 billion, an increase of 2.8% on restated basis, compared to same period last year.
The overall growth in reported profitability was driven mainly by lower operating cost, lower netprovisions and improved performance from our associates. The Group’s cost-to-income ratio improved to 25.2% from 26.1%. The overall growth demonstrates the Group’s steady financial Credit quality: The ratio of non-performing loans to gross loans stood at 6.0% as at September 30, 2024 compared to 5.3% as at September 30, 2023, due to lower loan balances.
During the period, the Group’s net provisions fell to QR534.9 million for the nine monthsended 30 September 2024, from QR721.4 million in the same period in 2023, due to higher recoveries and ECL release.
Also, Loan coverage ratio is at 114.9%, demonstrates the Group’sprudent approach and strategy towards managing non-performing loans. The Group’s strategy focuses on maintaining asset quality and reflecting commitment to sustainable
The Group’s Common Equity Tier 1 (CET 1) Ratio as at September 30, 2024 reached 13.0%. The Capital Adequacy Ratio (CAR) stood at 17.8%,underlining strong capital accretion. These ratios are higher than the regulatory minimum requirements of the Qatar Central Bank and Basel III requirements.
