The Commercial Bank (P.S.Q.C) ("the bank") and its subsidiaries and associates ("the group") today announced its financial results for the quarter ending March 31, 2023. The group announced a net profit of QR 751.3 million, compared to a net profit of QR 702.3 million for the same period in 2022.
The most prominent financial indicators of the group compared to the same period of 2022
Net profit of QR 751.3 million, an increase of 7.0%.
Normalized operating income of QAR 1,351.7 million, registering an increase of 11.1% (+10.4% on a reported basis).
Operating profit of QR 1,025.8 million, an increase of 8.8%.
The printed cost-to-income ratio is 24.1% (on a reported basis of 30.0%).
Total assets of QR 163.3 billion, a decrease of 4.7%.
Loans and advances to customers QAR 94.4 billion, down by 4.0% from March 2022.
Customer deposits of QR 76.1 billion, down by 10.0% from March 2022.
Success in issuing the first international bonds in Qatari riyals, with a value of 429 million Qatari riyals.
Fitch Ratings has revised Commercial Bank’s outlook from stable to positive with an affirmation of the issuer’s short and long-term solvent ratings A-/F2.
The bank ranked 21st on the Forbes list of the 50 largest banks in the Middle East in terms of market capitalization for the year 2023.
prize "The best trade finance service provider in Qatar" From Global Finance.
Sheikh Abdullah bin Ali bin Jabor Al Thani, Chairman of the Board of Directors of the Commercial Bank, stated: "Commercial Bank achieved a positive financial and operational performance in the first quarter of 2023, largely supported by the sustained growth of the Qatari economy over the past year, which recorded an impressive GDP growth rate of 8% in the last quarter of 2022 compared to the same period in 2021. According to the Planning and Statistics Authority. We look forward to achieving another year of positive results and contributing to the continued growth and prosperity of the Qatari economy."
Mr. Hussain Al-Fardan, Vice Chairman of the Board of Directors of Commercial Bank, said: "Commercial Bank is pleased to announce the continuation of the upward momentum in its results for the first quarter of 2023, reflecting the positive momentum of the macroeconomic fundamentals of the State of Qatar and our continued commitment to operational excellence. Our results were boosted by growth in unfunded income and our earnings remained healthy.
"We continue our efforts to provide the best services to clients and customers, and we are confident that our continuous investments in digital technology and innovation will enable us to remain at the forefront in our field.".
Group operating profit increased by 8.8% to QR 1,025.8 million for the quarter ended March 31, 2023, compared to QR 942.5 million achieved in the same period of 2022.
The Group’s net interest income increased by 7.5% to QAR 987.0 million for the quarter ended March 31, 2023 compared to QAR 917.8 million achieved in the same period of 2022. The net interest margin increased to 2.8% for the quarter ended March 31. 2023 from 2.7% in the same period of 2022.
Group non-interest revenue increased by 22.2% to QAR 364.7 million (+16.9% on a reported basis) for the quarter ended 31 March 2023 compared to QAR 298.4 million achieved in the same period of 2022. The total increase was due to non-interest revenue The benefits are mainly due to the increase in foreign exchange revenues, trading revenues, and recovery of investment revenues.
Total Operating Expenditures increased by 19.1% and amounted to QAR 325.9 million (+14.3% on a reported basis) for the quarter ended March 31, 2023 compared to QAR 273.7 million for the same period in 2022.
The Group’s balance sheet decreased by 4.7% as at 31 March 2023 with total assets amounting to QAR 163.3 billion compared to QAR 171.5 billion in March 2022. The decrease was mainly due to lower balances with the Central Bank and loans and advances to customers.
The Group’s loans and advances to customers decreased by 4.0% and amounted to QR 94.4 billion as at 31 March 2023 compared to QR 98.4 billion in the same period in 2022. The decrease was mainly due to a decrease in acceptances to QR 3.7 billion and a decrease in loans and advances to Alternatif Bank to QR 2.2 billion. Qatari riyals, while local loans increased to 1.9 billion Qatari riyals.
The Group’s investment securities increased by 5.5%, reaching QR 29.8 billion as on March 31, 2023, compared to QR 28.3 billion in the same period in 2022.
As for the group’s customer deposits, they decreased by 10.0% and amounted to QR 76.1 billion as on March 31, 2023, compared to QR 84.5 billion in the same period in 2022. The decrease occurred mainly in term deposits.
Mr. Joseph Abraham, Group Chief Executive Officer of Commercial Bank, commented: "Commercial Bank continued its track record of strong performance with improved financial results for the period ended 31 March 2023. The Bank has built on the momentum from last year and made significant progress on our strategy.
"The Group announced a consolidated net profit of QR 751.3 million for the period, recording an increase of 7.0% compared to the same period in 2022. This increase is mainly due to growth in operating income and higher contributions from associates.
"Normalized operating income grew by 11.1% to QR 1,351.7 million, on the back of a 7.5% growth in net interest income and a 22.2% increase in total fees and other income. Group net interest income for the period increased by 7.5% to QR 987.0 million, as we re-price our assets due to the rising interest rate environment. Consequently, the net interest margin ratio increased to 2.8% in the first quarter of 2023 from 2.7% in the first quarter of 2022. Total fees and other income increased by 22.2% to QR 364.7 million.
At the group level, the cost to income ratio was 24.1% for Commercial Bank on a normalized basis in the first quarter of 2023, registering an increase of 1.6% due to inflation-related expenses as well as donations related to the earthquake in Turkey. The local operations in Qatar improved the normalized cost to income ratio to 20.2% in the first quarter of 2023 from 20.4% in the same period of 2022 as the bank continues to focus on increasing efficiency.
"Net provisions decreased by 0.9% to QR 273.5 million, compared to QR 275.9 million in the first quarter of 2022.
"Investment securities increased by 5.5%, reaching 29.8 billion Qatari riyals, compared to 28.3 billion Qatari riyals during the same period in 2022.
"Group loans and advances decreased by 4.0% to QAR 94.4 billion, mainly due to a decrease in our acceptances by QAR 3.7 billion, decrease in loans and advances at Alternatif Bank by QAR 2.2 billion, while local loans increased by QAR 1.9 billion. Customer deposits decreased by 10.0% to QR 76.1 billion.
"Our associate companies continue to perform better, with net profits from associates amounting to 69.6 million Qatari Riyals, an increase of 48.9%, compared to 46.7 million Qatari Riyals during the same period in 2022.
"Alternatif Bank announced a net profit of 313.0 million TL for the first quarter of 2023 compared to a net profit of 131.8 million TL for the previous year. However, the results of the first quarter of 2023 were affected by accounting for high inflation by 301.9 million TL, which led to a net contribution from Alternatif Bank of 11.1 million TL.
"Finally, Commercial Bank was ranked 21st on Forbes’ list of the 50 largest banks in the Middle East by market capitalization for the year 2023. Fitch Ratings revised Commercial Bank’s outlook from stable to positive, emphasizing the issuer’s long- and short-term solvency ratings A-/ F2.
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