Commercial Bank Financial Performance Report Q1 2022
Continuous income growth and cost efficiency further improves cost income ratio with a best in
class employee share option scheme
Operating Expenses
Normalised cost to income ratio improved to 22.5% (actual reported
29.0%) in Q1 2022 from 26.8% (actual reported 31.5%) in Q1 2021
mainly on account of growth in operating income by QAR 97.7m on
normalized basis.
Continued focus on digital processes and tight expense management.
In Qatar, normalised Cost to Income Ratio improved to 20.4% (actual
reported 27.6%) in Q1 2022 from 22.2% (actual reported 27.5%) in Q1
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.
As at 31 Mar 2022, staff costs include a cost of QAR 111.0m (31 Mar
2021 QAR 74.3m) with respect to performance rights. This is hedged
and hence no impact to P&L.
CB share price was QAR 7.47 as at 31 Mar 2022 and has moved from
QAR 6.75 as at 31 Dec 2021.
Cost to Income Ratio Consolidated
33.4%
28.7%
26.0%
24.1%
26.8%
22.5%
2018
2019*
2020*
2021*
Q1 2021*
Q1 2022*
Cost to Income Ratio Domestic
28.5%
25.5%
22.2%
22.0%
20.5%
20.4%
2018
2019*
2020*
2021*
Q1 2021*
Q1 2022*
*Represents Normalized C/I ratio
33
13
55View entire presentation