Commercial Bank has posted a half yearly net profit of QR482mn, the bank said yesterday.
The bank delivered a net profit of QR208mn for the second quarter, a decrease of 65% compared to the second quarter 2015, and a 24% decrease compared to the first quarter of this year.
In the first half of last year Commercial Bank had registered a net profit of QR1.05bn.
Commercial Bank delivered balance sheet growth of 7% at the end of June with total assets at QR127.3bn compared with QR119.1bn in the same period last year. 
The balance sheet growth was driven mainly by an increase of QR8bn in customer deposits and loans and advances of QR5bn.
Customer loans and advances were up 6.6% to QR77.4bn. The growth in lending has been generated, mainly, in the services, commercial and Industrial sectors. 
Customers’ deposits increased by 12.4% to QR72bn in June, compared with QR64.1bn in the same period last year. The increase was mainly in time and demand deposits.
The bank’s net provisions for loans and advances were QR603mn for the half-year that ended in June, up 60% on QR376mn for the same period in 2015. 
The NPL ratio has increased to 4.8% in June compared with 4.5% at the end of March this year and the coverage ratio increased to 78.5% as of June 30 compared with 76.1% in end-March.
Impairment provisions on the Bank’s investment portfolio increased to QR50mn for the half-year ended 30 June 2016 compared with QR12mn for the same period in 2015 mainly due to provisions required on equities.
Commercial Bank chairman Sheikh Abdullah bin Ali bin Jabor al-Thani said, “Although world economic conditions remain challenging, the Qatari economy continues to deliver robust growth. The growth of the non-hydrocarbon sector continues to offset any impact of lower hydrocarbon prices. Qatar’s non-hydrocarbon economy is increasingly being driven by the services sector, offering Commercial Bank significant future opportunity. “As we look to the future, we have strengthened our executive team with the appointment of Joseph Abraham, a highly experienced developed markets’ and emerging markets banker, to the role of CEO. We were delighted to promote Abdulla Saleh al-Raisi as adviser to Commercial Bank’s Board. Both appointments will benefit the long term future of Commercial Bank.”
Commercial Bank vice chairman and managing director Hussain Alfardan, said, “Commercial Bank reported an operating profit of QR1bn for the first six months of 2016. Market conditions are challenging, however, the continued diversification of the Qatari economy and the government’s commitment to its public infrastructure projects provides the opportunity for growth.”
Commercial Bank chief executive officer Joseph Abraham said, “Commercial Bank’s financial performance for the period has been impacted by a combination of factors across the various markets in which it operates.”
He said, “Qatar generated a solid performance despite the challenges of the slower market conditions due to lower hydrocarbon prices. We continue our efforts to increase our yields by selective re-pricing of assets and focus on increased cross sell across our business lines. We are also looking at our business strategy to reshape our book to be in line with market opportunities.  
“Our Turkish subsidiary ABank and associate UAB continue to operate in challenging economic conditions and their results reflect these conditions; our efforts will be focused on bringing greater integration of risk and business plans in these markets to ensure that they are reflective of market opportunities and risks. NBO in Oman has performed well given the market context. We have maintained a tight control on costs during the period and this will be our continuing focus to ensure we create space for necessary productive investments.”     He said, “2016 will be a challenging year for the financial services sector; however, we will be focused on taking actions to ensure that Commercial Bank is in a good position to generate future value for customers and shareholders.”