Doha Bank is revisiting its three-year strategic plan for 2016-18, especially in relation to its overseas operations, as well as diversifying income sources, in view of expected “pressure” on domestic lenders’ performance during 2016 and 2017.
“We are currently in the process of revising the bank’s three-year strategic plan 2016–2018 which will incorporate some amendments to the bank’s business strategy especially with regards to the activities of overseas branches and representative offices across the world,” Doha Bank chairman Sheikh Fahad bin Mohamad bin Jabor al-Thani said.
Addressing the shareholders at the annual general assembly, where cash dividend of QR3 per share was approved, he said the future plan of the bank includes diversifying income sources and strengthening the financial position with a view to achieving the highest level of effective operational performance.
In June 2015, Doha Bank enhanced its Tier 1 capital base and capital adequacy ratio, strengthened its lending capacity and improved its competitive edge and prospects for achieving its strategic goals through the issuance of Tier 1 capital instruments for the second time amounting to QR2bn as per the terms and requirements of the Qatar Central Bank. The first QR2bn issuance of similar instruments was carried out at the end of 2013.
The review of business strategy comes in the backdrop of changing dynamics in the domestic, regional and global economies.
“No doubt that the challenges faced by capital markets in this region due to the recent substantial decline in oil prices, in addition to the political events experienced in the middle east, has adversely affected all economic sectors including the banking sector and it will increase the pressure on banks’ performance during 2016 and 2017,” Sheikh Fahad said.
He said Doha Bank’s achievements during the year 2015 came in the midst of fierce competition in the market and the challenges and difficulties faced by capital markets worldwide.
“By the end of year 2015, we achieved extraordinary growth rates in all financial indicators,” he said, adding total assets rose 10.3% to QR83.3bn; total portfolio of loans and advances by 14.5%; total customers’ deposits by 14.8% and total shareholders’ equity reached QR13.2bn.
Highlighting that the bank’s net profit grew 1% to QR1.37bn in 2015; Sheikh Fahad said these robust results were reflected in strong performance ratios particularly the return on average shareholders’ equity and the return on average assets which were 16.1% and 1.73% respectively.
“Due to the wise leadership of HH Sheikh Tamim bin Hamad al-Thani, the Emir of Qatar, we trust that Qatar has all the tools and capabilities to overcome the problems and difficulties and we look forward to the launching of many development projects in the coming years that will reflect positively on the performance of the banking industry in Qatar in general and of Doha Bank in particular,” Sheikh Fahad said.
As part of revising the three-year business plan, Doha Bank is also implementing an effective risk management strategy both at local and international fronts, recruiting Qatari nationals, enhancing the levels of staff performance by recruiting highly experienced and qualified human resources, improving banking services delivery channels, and upgrading the level of corporate governance.
The extraordinary general assembly meeting also agreed to amend the Articles of Association of the bank in line with the new law of the commercial companies by Law No (11) of 2015.
Besides, Ernst & Young has been appointed to audit Doha Bank’s accounts for the year 2016.