A sustained growth in core earnings led Doha Bank report a net profit of QR1.1bn in the first nine months of this year.
The net profitability came amidst decline in oil prices and challenges in the financial markets across various countries, a bank spokesman said after the board meeting.
The lender sustained its core income as the net interest earnings were up more than 2% in September 2016 compared to the corresponding period of the previous year.
“The bank’s core revenue streams have shown strength over the prior year period, reflecting on its intrinsic strength towards recurring earning capacity and also on the productive operational performance,” Doha Bank chairman Sheikh Fahad bin Mohamad bin Jabor al-Thani said.
Total assets grew about 3% to QR84.5bn with net loans and advances expanding 2% to QR55.6bn during January-September this year.
Total deposits, however, fell 7% to QR48.6bn, largely reflecting the systemic decline.
Sheikh Abdul Rehman bin Mohamad bin Jabor al-Thani, managing director, said the bank has become “extremely” strong over the years with total equity registering an increase of 1.5% to QR13.4bn during the last 12 months.
“Through the strategic utilisation of the shareholders’ funds by way of increasing our performance levels, the return on average shareholders’ equity is 14.8% as on September 30, 2016, one of the best in the industry,” he said.
The bank, given the scale of operations, has achieved very high return on average assets at 1.62% at the end of September this year, which according to him, is a clear demonstration of the effective utilisation of shareholders’ funds and optimum asset allocation strategies. “Doha Bank’s results once again highlights the strength of its products and services, ongoing customer demand, capitalising on market synergies in a challenging competitive environment,” its group chief executive Dr R Seetharaman said.
The lender recently updated its Euro Medium Term Note programme, which is listed on the London Stock Exchange. This was preceded by ordinary general assembly of shareholders, which unanimously agreed with the board’s proposal to issue certificate of deposits and commercial papers, subject to necessary regulatory and other approvals.
Doha Bank, in line with its international expansion strategy and specific growth focus in India, recently inaugurated its relocated Kochi branch at LuLu Mall.
The lender also entered into agreement with India’s Centrum Group to facilitate the development of Gulf Cooperation Council business for Centrum with its network; while the latter will reciprocate in India for Doha Bank, specifically in the areas of banking, wealth management and foreign exchange.
Doha Bank, which established its 13th representative office in Bangladesh, is planning to formally inaugurate it during the fourth quarter of this year.
Recently, Doha Bank signed a memorandum of understanding with Qatar Finance and Business Academy to implement Kafa’a Competency framework to develop the skills of its employees.