Commercial Bank Reports Net Profit of QR431 Million in Q1 of 2019

Doha, April 17 (QNA) - he Commercial Bank (P.S.Q.C.) ("the Bank"), its subsidiaries and associates ("Group") announced today its financial results for the quarter ended 31 March 2019. The Group reported a net profit of QAR 431 million as compared to 405 million for the same period in 2018, an increase of 6.4 percent. Chairman of the Board of Directors of Commercial Bank HE Sheikh Abdulla bin Ali bin Jabor Al-Thani stressed the commitment of the bank to supporting the country's economy in its journey. Commercial Banks Vice Chairman Hussain Alfardan said that operating profit for the Group increased by 2.1 percent to QAR 621 million for the quarter ended 31 March 2019, compared to QAR 608 million achieved in the same period in 2018. Net interest income for the Group reduced by 11.8 percent to QAR 581 million for the quarter ended 31 March 2019 compared to QAR 659 million achieved in the same period in 2018. Net interest margin declined marginally to 2.0 percent for the quarter ended 31 March 2019 compared to 2.1 percent achieved in 2018. The reduction in margins is mainly due to the increase in cost of funding in Turkey, although margins have been managed through active loan book re-pricing and diversifying liquidity sources to minimize the increasing cost of funding. Non-interest income for the Group increased by 22.7 percent to QAR 319 million for the quarter ended 31 March 2019 compared with QAR 260 million. The overall increase in non-interest income was mainly due to Increase in foreign exchange gains. Commercial Bank Group Chief Executive Officer Joseph Abraham said that consolidated operating profit was QAR 621 million for the first quarter of 2019, an increase of 2.1 percent compared to the same period last year and consolidated net profit was QAR 431 million in Q1 2019 an increase of 6.4 percent compared to the same period in 2018. We continue to make good progress against our five-year strategic plan positioning Commercial Bank as a leading financial institution in Qatar. "The Domestic Bank reported net profit of QAR 399 million in Q1 2019, an increase of 12.1 percent compared to the same period last year. The improvement was largely driven by a reduction in net provisioning which decreased 20.1 percent compared to the same period last year. Operating profit increased to QAR 558 million during the period, driven by cost optimization and an increase in total fees and other income which partially offset the decline in net interest income. Loan and advances to customers were down 5.7 percent to QAR 74.1 billion in Q1 2019 on the back of the repayment of a temporary overdraft by the Government following Qatars sovereign bond issuance in April 2018. Customer deposits increased 5.2 percent to QAR 72.9 billion," he added. (QNA)