Commercial Bank Financial Performance
Executive summary
Strategic Focus
Results
Progress
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Net profit of QAR 2,811.1 million, up by 22.0% compared to the same period in 2021.
Normalized operating income of QAR 5,298.4 million, up by 11.0% (+3.8% on reported basis).
NIMs increased to 2.8% from 2.7% in 2021.
Operating profit of QAR 4,155.9 million, up by 14.8% as compared to the same period in 2021.
The Group reported a non-cash "net monetary loss" of QAR 189.4 million as a result of application of hyperinflation accounting to Alternatifbank in accordance with
International Accounting Standards (IAS) 29.
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Total assets of QAR 169.1 billion, up by 2.2%.
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Capital &
Funding
Reshaping
CET1 at 11.6% as of 31 December 2022 compared to 11.7% as of 31 December 2021. The reduction from 31 December 2021 is mainly due to negative fair value reserve
by QAR 0.8 billion.
Low cost deposits have increased by 6.4%, year-on-year.
Consolidated loan book remained flat at QAR 98.0 billion.
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Loan Book
Focus remains on re-shaping profile of the lending book
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✓ Provisioning
Costs
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The overall loan book was impacted by the government repayment of temporary overdraft, despite growth in private sector loans by 4.0%.
Continued diversification of risk across a range of sectors including decreasing real estate exposure and increasing exposure to government and public sector.
Non-performing loan (NPL) ratio at 4.9% at 31 December 2022 from 4.7% at 31 December 2021.
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Loan coverage ratio (including ECL) strengthened to 105.4% as compared to 97.4% in December 2021.
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Subsidiary
Net cost of risk increased to 121 bps compared to 111 bps in FY 2021 on account of continued prudent provisioning on NPL customers.
Normalized consolidated cost to income ratio decreased to 21.6% (reported 21.5%) in FY 2022 from 24.1% (reported 29.0%) in FY 2021 and in Qatar, cost to income ratio
decreased to 19.2% (reported 19.1%) in FY 2022 from 20.5% (reported 26.0%) in FY 2021.
Alternatif Bank reported net profit of TL 123.1m (QAR 31.5m) in FY 2022 compared to a net profit of TL 76.5m (QAR 23.7m). The results for 2022 are impacted by the
hyperinflation accounting. The net monetary losses due to hyperinflation is QAR 189.4 million.
Normalized numbers exclude the impact of fully hedged staff performance rights scheme. Due to accounting requirements, it results in a gross up of operating income and operating cost lines, so accordingly, the
impact is removed to show the underlying trend of the results.
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