Commercial Bank Investment and Financial Highlights slide image

Commercial Bank Investment and Financial Highlights

Executive summary Strategic Focus Progress • • Results • Capital & Funding Reshaping Loan Book Net profit growth of QAR 19.4% to QAR 1,504m for 9 months ended 30 September 2019 compared to same period in 2018. Results were driven mainly by an increase in operating income and lower costs. Net operating profit increased by 14.6% to QAR 2,029m. ROAE increased to 9.4% in 9 months 30 September 2019, from 8.2% in same period in 2018. Best Cash Management Bank in Qatar for the third year in a row from "The Asian Banker" • Best Transaction Banking service in Qatar from "The Asian Banker" . • • . • • • Commercial Bank won the Asian Banker's 'Best Retail Bank in Qatar' award for the third year in a row 'Financial Technology Innovation Award 2019' for the 60 Seconds Online Remittance service Best Corporate Governance in Qatar 2019 award by World Finance. CET1 and Total Capital Ratios increased to 11.0% and 16.2% respectively as compared to 9.7% and 14.6% at 30 September 2018. Total consolidated deposits increased by QAR 2.5bn, up 3.5% at 30 September 2019 vs December 2018 Consolidated loan book at QAR 89.1bn in Sept 2019, up 5.2% v December 2018. Focus remains on re-shaping profile of the lending book, by diversifying risk across a range of sectors including decreasing real estate exposure and increasing exposure to government and public sector. Government sector has increased by 4%, real estate and contracting sectors were down by 4% and 3% respectively as compared to Sept 2018 NPL ratio reduced to 4.9% in Sept 19 compared to 5.5% in Sept 2018 due to cash recovery/settlement. Consequently, the loan coverage ratio (including ECL) increased to 95.2% as compared to 83.6% in Q3 2018. • ✓ Provisioning . Cost of Risk reduced to 90bps in Sept 2019 compared with 107bps in 2018. • ✓ Costs • Consolidated Cost to Income ratio reduced from 33.5% to 28.9% and in Qatar from 28.8% in 9m 2018 to 25.7% in 9m 2019 led by digitisation, automation, productivity enhancements and operating income. Operating expenses reduced by QAR 68.3m (7.7%) vs 9m 2018. This was mainly within the Qatar domestic business where costs reduced by QAR 46m (6.8%) vs 9m 2018. Alternatif bank reported net profit of TL 170m (QAR 109m) for 9m 2019 compared to TL 92m (QAR 75m) in 9m 2018. Subsidiaries . NBO reported flat net profit of OMR 38.3m (CB's share QAR 126.3m) as compared to 9m 2018. & Associates • UAB continues to be an asset held for sale in Sept 2019. 17
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