Commercial Bank Financial Performance
Continuous income growth further improves cost income ratio with a best in class employee
share option scheme
Operating Expenses
Normalised cost to income ratio improved to 21.6% (actual reported
21.5%) in FY 2022 from 24.1% (actual reported 29.0%) in FY 2021 mainly
on account of growth in operating income by QAR 526.9m on normalized
basis.
Continued focus on digital processes and tight expense management.
In Qatar, normalised cost to income ratio improved to 19.2% (actual
reported 19.1%) in FY 2022 from 20.5% (actual reported 26.0%) in FY
2021.
Employee Share option scheme
The Bank introduced employee share option scheme in 2017 and has
granted performance rights to employees including senior
management.
It has proved to be a successful retention scheme.
The scheme has malice and claw back clauses.
Performance rights are settled in cash.
Based on IFRS 2, we account for the movement in share price under
staff costs.
Staff costs include a cost reversal of QAR 4.4m compared to a charge
of QAR 329.3m in FY 2021 with respect to performance rights. This is
hedged and hence no impact to P&L.
CB share price has moved to QAR 5.00 as at 31 December 2022 from
QAR 6.75 as at 31 December 2021.
Cost to Income Ratio Consolidated
33.4%
28.7%
26.0%
24.1%
21.6%
2018
2019*
2020*
2021*
2022*
Cost to Income Ratio Domestic
28.5%
25.5%
22.0%
20.5%
19.2%
2019*
2020*
2021*
2022*
*Represents Normalized C/I ratio
2018
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