DOHA BANK ACHIEVES Profit of QAR 471 Million

DOHA BANK ACHIEVES Profit of QAR 471 Million

His Excellency Sheikh Fahad Bin Mohammad Bin Jabor Al-Thani, Chairman of the Board of Directors of Doha Bank, announced Doha Bank's financial results for the first half of 2018. Net profit for the first half of 2018 was QAR 471 million as against QAR 715 million for the same period last year after taking significant loan loss provision in relation to the bank’s GCC branches. The interest income increasing strongly by 12.5% as compared to the same period last year. However, the net interest income of the bank showed a year on year drop of 1.0% despite the challenges the market is facing for more than a year now. H.E. Sheikh Fahad said “the Bank’s core revenue streams have shown a sustainable earning capacity reflecting on the Bank’s intrinsic strength towards recurring earning capacity and also on the Bank’s productive operational performance especially at the times when the bank is consolidating its asset growth.”

 

Total assets decreased by QAR 2.7 billion, a decline of 2.9%, from QAR 91.8 billion as at 30 June 2017 to QAR 89.2 billion as at 30 June 2018. Net loans and advances stood at QAR 57.9 billion as at 30 June 2018 from QAR 59.2 billion for the same period last year, registering a decline of 2.2%. Customer deposits showed decrease of 7.9% from QAR 56.0 billion to QAR 51.6 billion as at 30 June 2018.

 

H.E. Sheikh Abdul Rehman Bin Mohammad Bin Jabor Al-Thani, Managing Director of Doha Bank said “The Bank has total equity as at 30 June 2018, at QAR 12.5 billion. Through the strategic utilization of the shareholder’s funds by way of increasing our performance levels the return on average shareholders’ equity is 10.0% as at 30 June 2018. The Bank, given the scale of operations, has achieved a return on the average assets of 1.03% as at 30 June 2018”

The Bank launched the Qatar’s first Exchange Traded Fund (QETF) as a tool for investment, introduced a new salary transfer package with additional benefits to its customers and launched Al Jana Series 7 - a new premium fixed deposit scheme with high rates of return. Highlighting the bank’s key initiatives and innovations, Dr. Seetharaman said, “Doha Bank looks to set the industry standard and continually explore new financial instruments that drive maximum value.”

During the year, the Bank introduced a ‘Cards Summer Campaign’ with many benefits for its customers. During the holy month of Ramadan, Doha Bank announced a car loan offer bundled with a free Comprehensive Car Insurance and hosted a special Suhoor banquet for its customers. Now in its fifteenth edition, the ‘Al Dana’ savings scheme monthly prize draw got to see the winners walk away with life-changing prizes. Reaffirming its commitment to providing its clients with the best-in-class banking experience, Doha Bank announced new exclusive benefits for its priority banking Al Riyada customers. Dr. R. Seetharaman said, “We offer our Al Riyada customers exclusive products, pricing and benefits, which are all designed to suit our customers’ needs.” Keeping pace with needs of the customers, the Bank revamped the Doha Sooq e-commerce website, introduced an Arabic portal, and upgraded its online banking portal for improved customer experience with enhanced security features. Furthermore, the Bank unveiled its newest communication platform, which combines WhatsApp, Facebook Messenger and Hello Doha email service, to deliver better and faster solutions to customers.

In continuation of its international expansion strategy, after successful establishment of Mumbai and Kochi branches in India, Doha Bank inaugurated its third dedicated branch in Chennai. The Bank has also formally inaugurated the representative office in Sri Lanka to capture the synergistic opportunities between Qatar, Sri Lanka and India. The Bank also held various knowledge sharing sessions for its customers across the globe. These events, not only help in creating awareness on the changing market dynamics, but also promote the bilateral relationship and synergies between GCC, India and various countries where Doha Bank has a presence.Doha Bank has also extensively leveraged on its vast international network to garner cost effective deposits.

During the year, Doha Bank has successfully implemented the new accounting standards (IFRS 9) as directed by QCB, wherein a conservative approach has been taken on recognition of impairments from the current approach of ‘incurred losses’ to forward looking ‘expected losses’. Fitch re-affirmed Doha Bank’s rating at ‘A’ and upgraded the outlook to ‘Stable’. Recently, Moody’s also upgraded the status to ‘Stable’.

In line with its commitment to hiring the best talent in the country, Doha Bank participated in career fairs during the year. As part of the employee engagement, the Bank organized monthly recognition awards to motivate its employees.

In testament to its performance, Doha Bank was awarded ‘Best Local Bank in Qatar’ by EMEA Finance Middle East Banking Awards, ‘Domestic Trade Finance Bank of the Year – Qatar’ by ABF Wholesale Banking Awards and ‘Best Arab Customer Services’ by World Union of Arab Bankers. Dr. Seetharaman lauded the efforts of the team and said, “Doha Bank develops leading banking solutions for our valued customers. Our responsibility is to understand customer needs in the light of fourth industrial revolution.”

As part of its commitment to society, environment and sustainability, Doha Bank donated to Qatar Red Crescent and Qatar Cancer Society, and also became the first Qatari bank to sign up to UN Global Compact - an UN policy initiative encouraging businesses to adopt sustainable and socially responsible policies. During the year, the bank sponsored Al Ruwad Business Case Competition and the Qatar International Agricultural Exhibition. Furthermore, the bank conducted the ‘Beach Clean-up’ event in collaboration with Ministry of Municipality & Environment, celebrated ‘Earth Hour’ by switching off the lights in its corporate headquarters and branches, conducted the ECO-Schools Program awards as well as blood donation drive in coordination with Hamad Medical Corporation.