Earnings Performance - Half year ended 30 June 2019
Executive summary
Strategic Focus
.
Progress
Net profit growth of QAR 9.2% to QAR 934m for H1 2019 compared to H1 2018. Results were driven mainly by an increase in non
interest income, lower costs and lower provisioning.
Net operating profit increased by 6.8% to QAR 1,295m. ROAE increased to 9.0% in H1 2019, from 8.5% in H1 2018
Results
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Best Cash Management Bank in Qatar for the third year in a row from "The Asian Banker"
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Best Transaction Banking service in Qatar from "The Asian Banker"
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Commercial Bank won the Asian Banker's 'Best Retail Bank in Qatar' award for the third year in a row
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'Financial Technology Innovation Award 2019' for the 60 Seconds Online Remittance service
Capital &
Funding
Reshaping
Loan Book
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CET1 and Total Capital Ratios increased to 11.0% and 16.3% respectively as compared to 9.7% and 14.5% in H1 2018.
Total consolidated deposits increased by QAR 5.6 bn, up 7.8% in H1 2019 vs Q4 2018
LDR at 110.3% in H1 2019 as compared to 117.4% in Dec 2018.
Consolidated loan book at QAR 84.8bn in H1 2019, up 1.4% v Dec 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 5%, real estate
and contracting sectors were down by 2% and 4% respectively as compared to H1 2018
NPL ratio reduced to 4.9% in June 19 compared to 5.6% in Dec 2018 due to cash recovery/settlement. Consequently, the loan
coverage ratio (including ECL) increased to 96.2% as compared to 80.3% in Q1 2019.
Cost of Risk reduced to 102bps in H1 2019 compared with 107bps in 2018.
✓ Provisioning
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✓ Costs
Subsidiaries
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Consolidated Cost to Income ratio reduced from 33.9% to 29.9% and in Qatar from 28.9% in H1 2018 to 26.6% in H1 2019 led by
digitisation, automation, productivity enhancements and operating income.
Operating expenses reduced by QAR 69m (11.1%) vs H1 2018. This was mainly within the Qatar domestic business where costs
reduced by QAR 36m (7.9%) vs H1 2018.
Despite the economic volatility, Alternatifbank reported net profit of TL 99m (QAR 64m) for H1 2019 compared to TL 77m (QAR
69m) in H1 2018.
& Associates
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Injected USD 50 million capital in June 2019.
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NBO reported flat net profit of OMR 24m (CB's share QAR 83m) as compared to H1 2018.
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UAB continues to be an asset held for sale in H1 2019.
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