Commercial Bank Financial Performance Report Q1 2022
Executive summary
Strategic Focus
Results
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Progress
Net profit of QAR 702.3 million, up by 16.5% compared to the same period in Q1 2021.
Normalized operating income of QAR 1,216.2 million, up by 11.9% (+14.3% on reported basis)
NIMs increased to 2.8% from 2.6% in Q1 2021.
Operating profit of QAR 942.5 million, up by 18.6% as compared to Q1 2021.
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Total assets of QAR 171.5 billion, up by 5.1%.
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"Best Bank" award in Qatar by Global Finance.
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"Best Trade Finance Provider" award in Qatar by Global Finance.
Capital &
Funding
Reshaping
Loan Book
Provisioning
Costs
Subsidiaries
& Associates
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"Serving Business Owners" award in Private Banking and Wealth Management in Qatar from Euromoney.
CET1, Tier 1 and Total Capital Ratios at 12.2%, 16.4% and 18.1%, respectively, as compared to 12.0%, 16.3% and 18.3% at Mar 2021.
Low cost deposits have increased by 10.9%, year-on-year.
Consolidated loan book stood at QAR 98.4 billion, down 1.0% from Mar 2021 but up by 0.4% from Dec 2021.
Focus remains on re-shaping profile of the lending book
Continued diversification of risk across a range of sectors including decreasing real estate exposure and increasing exposure to government and public sector.
Growth in commercial and services sectors, but Government sector exposures decreased to 16% in Mar 2022 from 19% in Mar 2021 due to repayment of the temporary
overdraft by Government.
NPL ratio increased to 4.6% at Mar 2022 from 4.2% at Mar 2021, however this has decreased from 4.7% in Dec 2021.
Loan coverage ratio (including ECL) decreased to 100.2% as compared with 105.9% in Mar 2021, but increased from 97.4% in Dec 2021.
Due to continued prudent provisioning on NPL customers, gross cost of risk increased to 118 bps in Mar 22 Vs 108 bps in Mar 21.
Net cost of risk increased to 96 bps at Mar 2022 compared with 87 bps at Mar 2021.
Normalized consolidated cost to income ratio decreased to 22.5% (reported 29.0%) in Q1 2022 from 26.8% (reported 31.5%) in Q1 2021 and in Qatar decreased to 20.4%
(reported 27.6%) in Q1 2022 from 22.2% (reported 27.5%) in Q1 2021.
Subsidiary and associates have improved profitability year-on-year.
Alternatif Bank reported net profit of TL 131.8m (QAR 34.4m), compared to a net loss of TL 41.3m in Q1 2021.
NBO reported net profit of OMR 10.2m (CB's share QAR 33.8m), compared to a net profit of OMR 6.9 million in Q1 2021.
UAB reported a net profit of AED 30.4m (CB's share of QAR 12.0m), compared to a net profit of AED 10.2m in Q1 2021.
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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