Commercial Bank Financial Performance
Asset Quality - 31 December 2022: Continued Prudent Approach on Provisioning
Summary
Loan coverage ratio
Net provision charge for loans and NPLs of QAR 1,184.7m vs QAR 1,104.5m in
FY 2021.
QAR 1,092.8m for Corporate
QAR 94.6m for Retail
(QAR 2.7m) for Alternatifbank
NPL ratio increased to 4.9% as at 31 December 2022 from 4.7% as at
31 December 2021.
Cost of Risk - net increased to 121 bps in FY 2022 Vs 111 bps in FY 2021.
Loan coverage strengthened to 105.4% from 97.4% in December 2021.
Risk reserve maintained at 2.5% of total loans and advances in addition to
credit impairment losses and interest is suspense. Risk reserve stands at QAR
2.3 billion in December 2022.
34.5%
35.1%
34.9%
20.8%
20.5%
58.1%
61.3%
66.5%
70.9%
62.5%
2018
2019
2020
I Provision coverage ECL coverage
2021
2022
Non-performing loan ('NPL') ratio (90 day basis)
Net Provision Charge for Loans and NPLs (QAR million)
5.6%
1.36%
1.36%
1.43%
1.29%
4.9%
4.7%
4.9%
4.3%
0.94%
1.07%
1.11%
1.21%
0.95%
0.68%
2,825
1,185
1,105
2,295
3,257
3,126
2,635
927
2018
594
2019
836
725
726
546
713
483
591
845
839
983
1,146
1,069
944
2018
2020
2021
2022
Cost of Risk (%) - net
Cost of Risk (%) - gross
2019
Retail
UHNW
SME
2020
2021
Corporate
2022
Gross NPLs / Gross Loans
14
44
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