Message from the Group Chief Executive Officer

Greetings!

We march forward into 2012 with fresh vigor and renewed enthusiasm after completing a highly satisfying business year in 2011, a year that witnessed shocks both in U.S and Europe. 2012 will be an eventful year with more challenges coming mainly from European Zone in the first half of the year. Doha Bank had demonstrated its resilience during the 2008 crisis and in 2012 Doha Bank will continue to be mindful of the Global and regional risks as we march forward in our journey of excellence.

Doha Bank has posted full-year net profit of QR1.24bn in 2011, up 18% on the year before. The bank’s total assets rose to QR52.4bn last year, an increase of 11% compared with 2010. Loans and advances rose from QR26.5bn in 2010 to QR30.7bn in 2011, representing a growth of 15.7 %. Customers’ deposits grew by 2.8% to QR31.7bn in 2011 compared with QR30.8bn in 2010.The shareholders equity totalled QR7.1bn in 2011, which is an increase of 17.3% compared with the previous year. The earnings per share were QR6.03. The return on average shareholders’ equity and the return on average assets were an impressive 22% and 2.49% respectively. The bank’s non-performing loans (NPLs) were just 3.3% of total loans. Doha Bank’s board of directors to submit a recommendation to the General Assembly to approve distribution of cash dividends to the shareholders at the rate of 45% of the paid up capital, which is QR4.50 per share. Doha Bank’s successful results are largely attributable to the bank’s Strategy to innovate, diversify and capitalize on market synergies, as it continues to increase shareholder value.

Doha Bank is continually striving to create job opportunities for Qatari citizens and to fully participate in the aims and achievements of the Qatar National Vision 2030 set forth by His Highness Sheikh Hamad Bin Khalifa Al-Thani, the Emir of the State of Qatar. The Bank’s Management has adopted a five-year strategy to increase the percentage of Qatari employees in the bank in every department by executing a number of plans that aim at attracting and retaining the national competencies through enrolling them in training and development programs that motivate and lend a helping hand to them to progress to higher job grades. Such programmes proved to be very effective as the percentage of Qatari employees has increased to 25% in the second quarter of current year. In Oct 2011 as part of Doha Bank’s commitment to invest in national manpower Doha Bank increased the salaries of the Qatari employees by 60% on both the basic pay and social allowance. This increase will provide a perfect work environment for Qatari employees, and will attract the national competencies to work in Doha Bank.

Doha Bank also launched in collaboration with VISA Inc, the world’s largest retail payment network, the “Al Riyada” Visa Infinite Credit Card”. Doha Bank also announced the opening of its new electronic branch at Parco Mall which is conveniently located at the main highway of Maamoura. This electronic branch is brought into line in accordance with the distribution structure that Doha Bank management has set to better cater to the clients’ needs, and in altering the look and feel from the inside out to mirror the Bank’s distinctive and fresh image in union with its brand rejuvenation strategy.

Doha Bank in partnership with Regency Travels and Tours, the most favored travel service in Qatar, and a consistent winner of the “World’s Leading Travel Agency” awards, announced today that they have entered into an agreement to launch the Doha Bank – Regency Travel Card, in arrangement with MasterCard. Since Qatar is a multi-cultural splendor, with expatriates from all over the world, travel is not constrained to a particular season but rather ensues throughout the year.

In a moment of pride and excitement, Doha Bank received "Bank of the Year 2011 in Qatar" by Arabian Business, "Best Commercial Bank in Qatar" award from World Finance and "World’s Best Trade Finance Provider in Qatar 2011" award from Global Finance. Doha Bank also maintained the winning streak at the Golden Peacock Awards by bagging the Golden peacock award for sustainability” - World Council for Corporate Governance. These awards and recognitions always inspire us to move forward with renewed zeal and determination to be the best.

On the Retail front, "Doha bank launched, the marvelous 25% cash back offer with multiple opportunities for Free For Life Dream Credit Cards holders to benefit whether they are traveling or not. Similarly, Al Dana proved to be the greatest engagement programme running with distinction and yielding the highest chances with more winners and larger than life prizes. In addition to these, the innovative loan portfolio, presented the Best Car Loan Offer at ZERO Interest Rate with the lowest interest rate among all rates in Qatar and the new "Education Pack" following the splendid accomplishments of the "Education for a New Era" initiative set by the Qatari Government. All these were offered in line with Doha Bank’s continuing efforts to deliver the highest value added benefits to its current and potential customers. Doha Bank relocated the Ministry of Commerce branch to City Center Mall and this initiative will now enable Doha Bank Ministry of Commerce customers to avail full Retail Banking services from 9-to-9 daily including weekends thus bringing added convenience to our customers.

Doha Bank has also announced the launch of its new electronic money transfer campaign with incredible prizes to be given away to 34 lucky Doha Bank customers. Customer who use their Doha Bank Online Banking System, their Doha Bank Mobile Banking Application, or visit any of Doha Bank’s strategically located Branches to transfer money between October 2011 and January 2012, stand a chance to win in the monthly recurring raffle draws to get one of 30 Nokia mobile phones and a blackberry, laptop, home theater or iPad 2 at the end of campaign bumper draw. Pleasingly, customers can also increase their chances of winning with every additional money transfer they make throughout the same period.

Al Dana savings scheme declared the winners of the 7th draw prizes for 2011. The exceptional scheme which has maintained the highest credibility throughout the years continues to be sensationally the finest savings program ever in Qatar and the region. On September 15th 2011, 10 Al Dana customers received QR 20,220 each to join the crowd of lucky winners who already won a total of QR 1,415,400. Also, Al Dana gold delivered the fourth bar of 2022 grams of gold in anticipation of the 12.13 kilograms of gold worth more than 2.8 million yet to be won

Continuing its knowledge sharing efforts, Doha Bank conducted a knowledge sharing session titled 'Customer Advantage’ on 19th Oct 2011 at Grand Hyatt Hotel, Dubai, UAE. This knowledge sharing session was attended by Diplomats representing respective foreign embassies operating in the State of Qatar, customers of Doha Bank, renowned bankers, industrialists, analysts, economists and regulators from the State of Qatar.

In adherence to QCB directives, we are converting our existing Islamic operations into conventional. So far we have observed excellent loyalty from our customers in the Islamic window who have evidenced interest in their relationship with Doha bank and its products and services. For customers who want to continue with Doha Bank we have provided them with both the options of conversion to Conventional or retaining the financing in Islamic till maturity. Doha Bank will continue to service the existing Islamic financing as per the agreed terms till its maturity.

Recognizing solid performance the International rating agencies, Moody’s, Standard & Poors, Capital Intelligence and Fitch Ratings, have assigned a stable outlook for Doha Bank owing to its consistently strong financial fundamentals, asset quality and robust liquidity. In addition to this, Standard & Poors maintained the rating on Doha Bank Assurance Company. Doha Bank Assurance Company LLC (DBAC), has been affirmed Counterparty Credit and Insurer Financial Strength Rating of BBB with a Stable Outlook, by Standard and Poor’s (S&P).S & P‘s Outlook on DBAC is based upon successful utilisiation of its relationship with Doha Bank and continuation of its strong ratios

On the International Front Doha Bank received from Central Bank of UAE Board the approval of granting Doha Bank the license to open a new branch in the Emirate of Abu Dhabi for practicing and rendering all financial and banking services. Doha Bank also entered into an agreement with Akbank, the one of the largest private sector bank in Turkey, for remittance of funds from Qatar to Turkey. This will enable our customers to have hassle free remittance facility aligned to our main objective of maximum customer satisfaction.

From the Corporate banking perspective, Doha Bank signed a Memorandum of Understanding with the SME Chamber of India at the National Level Flagship event jointly organized by The SME Chamber of India, Indian SME Knowledge Forum and India International Trade Centre at Mumbai.

Doha Bank held the International offices Annual Meet in Doha and Abu Dhabi in November 2011, which all the Chief Representatives and Chief Country Managers of its overseas Representative Offices and branches from 11 countries have participated. On this occasion the bank has convened a knowledge sharing session titled "Changing Market Dynamics" at Doha Tower and Sheraton Abu Dhabi Hotel & Resorts for its corporate clients who have cross border operations and its key relationships in which the eminent speakers from the industry provided a deep insight and shared their valuable experiences with the guests who attended the meet. The event was well attended by the local and foreign corporates and key relationships of the bank besides the dignitaries from the various foreign countries’ Embassy.

Doha Bank has always maintained that Customer is our priority and all the initiatives undertaken by us one way or other benefits the customer. It is the trust and confidence that our customers have placed on us that has allowed us to move forward with excellent perspective. Our vision is to be a top class one stop solution for all financial services by maintaining excellence in terms of performance, innovation, security and quality and sustaining the growth story. We are committed to sustain the growth, profitability and stakeholder and customer expectations, and maintain our hall mark in terms of performance, innovation, security and quality in 2012 as well.

Wish you all a Prosperous and Healthy New Year

Thanks and Regards

R Seetharaman
Group Chief Executive Officer