Commercialbank officials Andy Stevens, Hussain Ibrahim Al Fardan, Abdullah bin Khalifa Al Attiyah, Abdullah bin Ali bin Jabor Al Thani and Yap Chin Tuan at the press conference in which Commercialbank results for the year 2004 were announced.

Bank reaps in net profits of QR326.7m

Doha: Commercialbank announced net profits of QR326.7m for 2004. The bank's assets grew by 47 per cent and its operating income was up by 25 per cent.

The bank witnessed record growth in every aspect of its business last year,

H E Abdullah Khalifa Al Attiyah, Chairman of the Board of Directors of Commercialbank, said at a press conference yesterday.

"This was another year of dynamic growth and record results, and the 30th consecutive year of profitable operations for the bank", he said.

The bank's Loans and Deposits rose strongly by 43.1 per cent and 32.4 per cent respectively raising total assets to QR12.9 bn. Operating income, before provisions and expenses, also rose to record levels of QR531m, said Abdullah Khalifa Al Attiyah.

The press conference was attended by Hussain Ibrahim Al Fardan, Commercialbank Managing Director, Andy Stevens, General Manager and Yap Chin Tuan, Financial Officer.

Al Fardan said that the bank has for the past three years successfully focused its efforts on building a larger, more diversified and robust risk asset portfolio.

"Strategies aimed at winning more market share as well as greater share of individual wallet have been successfully pursued, across all our lines of business. At the same time the bank is also continuously developing a broader range of financial capabilities to serve an increasingly sophisticated market demand", said Al Fardan.

The bank's interest income rose by 29.4 per cent to QR441.5m, whilst interest expense increased by QR40.8m. As a result of good growth in quality risk assets, the bank increased it's net interest income by 22.9 per cent from QR259.8m to QR319.2m. Other incomes climbed 29.6 per cent to QR212.1m on the back of 43.7 per cent increase on net fees and commission, 31.7 per cent increase in foreign exchange earnings and a 5.6 per cent increase on the bank's own investment earnings.

Operating expenses, net of provisions, rose by 34.3 per cent to QR196m. The net profit translates into basic earnings per share of QR6.12, from QR6.97 per share in 2003, despite an increase in Paid-up Capital of 50 per cent by way of a bonus and Rights Issue in mid 2004. On an adjusted basis earnings per share was QR6.88.

"The continued strengthening of our equity base is part of our focused strategy to position Commercialbank as best equipped to tap into the huge opportunities which Qatar would offer in the coming years, while preparing ourselves for the implementation of Basel II. At year-end 2004, the bank's Tier 2 capital adequacy ratio was at 34.6 per cent", said Al Fardan.

A cash dividend of 40 per cent of the issued capital, or QR213.6m, and a bonus share of 40 per cent, or four shares for every ten held is to be recommended to the Annual General Assembly of shareholders meeting scheduled for March 23, 2005.

The issue and distribution of bonus shares to existing shareholders will have the effect of increasing the bank's capital to QR747.5m. After all normal adjustments in line with International Financial Reporting Standards, by the year-end 2004 the bank's equity stood enhanced at QR2.6bn up from QR1.4bn in 2003.

"As at the end of December 2004 we held 14.3 per cent of Total Banking Assets clearly making us the second largest bank in the state. Moody's Investors Service has also assigned the highest BFSR rating amongst local banks of C-", said Andy Stevens.