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DOHA BANK ACHIEVES A BALANCED GROWTH AND IMPRESSIVE PERFORMANCE RATIOS
Mr. R.Seetharaman, Group Chief Executive Officer, Doha Bank addressed a press conference in head office building today and explained the performance of Doha Bank for the year 2007.
Net profit for the year 2007 has jumped to QR 926.5 million, compared to QR 744 Million for the year 2006, an increase of 24.53%. Earnings per share has increased to 7.42 as compared to QR 5.96 in the corresponding period of previous year. Net interest income rose by 30.65% to QR 683.8 million as compared to QR 523.5 Million in the year 2006. Commission income rose by 26.1% to QR 297.5 million while Exchange income rose by 113.7% to QR 75 million as compared to the year 2006 QR35 Million. Net operating income increased by 39.25%, from QR 1,073 Million to QR 1,494.3 million. The deposits have grown by 32% to QR 20.03 billion from QR 15.18 billion last year. Net loans & Advances increased to QR 19.17 billion from QR 13.63 billion, registering a growth of 40.64% compared to last year. Total assets increased to QR 30.1 billion from 21.7 Billion last year, a growth of 38.7%. The shareholders’ Equity, at the end of year 2007, stands at QR 3.62 billion, an increase of 30.74% over last year. The shareholders’ Equity at the end of 2006 was QR 2.77 billion. Doha Bank has achieved a return on average equity at 32.47% and Return on Average Assets at 3.58%.
Explaining the performance of Doha Bank, Mr. Seetharaman said the impressive result consistently achieved by the Bank is a clear reflection of multi-pronged growth strategy, its prudent implementation and high level of operating efficiency, given the scale of operations . If we look at the growth achieved organically in 5 years time frame 2002-2007, Shareholder equity has grown over 4.4 times, Asset has grown 4 times and Net profit has grown 7.7 times.
He stated various initiatives the Bank has undertaken towards growth and expansion during the year. “The bank had a highly successful subscription of USD 350 Million International Syndication to address the expansion needs and prudent assets & liabilities management. In line with its strategy, Doha Bank has Launched a wholly owned Insurance subsidiary DBAC (Doha Bank Assurance company) and acquired stakes in brokerage firm in India DBFS (Doha Brokerage and Financial Services). The Bank is seriously looking at having strong presence in Yemen in multiple forms, and, steps have already been initiated towards this. These are some important initiatives Doha Bank has undertaken towards diversifying, which could create strong business synergies.”
Explaining the global expansion Mr. Seetharaman said, “Doha Bank has established presence in Japan and China during the year. While fully functional Dubai branch has already been opened, Further overseas branches planned during the year include Kuwait. In addition, we are also establishing presence in Romania, which will take the tally of our direct presence to eight countries”
Mr. Seetharaman said the local branch network has grown considerably, with 5 new branches and 4 new pay offices opened during the year. Doha Bank now has a well dispersed network of – a combination of 26 full-fledged conventional branches, 4 Islamic branches, 8 pay offices and 10 State of art E-branches, providing a host of self-servicing facilities. Doha Bank has also installed 10 new ATM machines during the year, taking our ATM installations above 100. New branches opened are in Al-Handasa, Aswaq Maither, D-Ring Road, Lulu Hypermarket, and City Center. The City Centre branch is a unique model open from 9am to 9pm, and offering a new customer experience in a one-stop financial supermarket concept. Four pay offices are in Q-post locations in Teyseer (Airport Rd.), Souq Al-Ali, Al-Mountazah and Q-Post head office at corniche.
Talking about new products and services, Mr. Seetharaman said Doha Bank continually innovates its products and services. Welcome package to help new professionals in settling down smoothly, Dream credit card, Innovative loyalty programs, Al Jana series III fixed deposit scheme, Refined housing financing with collaborations with reputed real estate companies and refinement in auto financing collaborating with all leading auto dealers, Bayroot services for Lebanese expatriate community, Swagath services for Indian expatriate community are all examples of Doha Bank’s consumer centric product innovation and deployment.
Talking about Doha Islamic Mr. Seetharaman said Doha Islamic, the Islamic window of Doha bank group has been doing extremely well. It has crossed QR 2 Billion mark in two years time, achieving impressive growth rate. With a new branch in Aswaq Maither, Doha Islamic has four branches now. Doha Islamic offers over 13 Islamic products including Murabaha, Mudaraba, Ijara and Istissna that covers all financing needs of retail as well as corporate customers at different stages of his lifecycle. Recently, Doha Islamic has come up with Islamic credit card that is based on installments.
Talking about increasing standing of Doha Bank, Mr. Seetharaman said that Doha Bank has been winning various awards and accolades on consistent basis. Recent ones are World Finance award as “Best Bank in Qatar - 2007”, and, Banker Middle East award for “Best commercial Bank in middle east - 2007”. Our newly established Doha Islamic has bagged the “Best Islamic Corporate Finance in Middle East – 2007” award by Islamic Business and Finance.
Further, Mr. Seetharaman, also highlighted Standard & Poor’s Rating Services having assigned Doha Bank with “A-/A-2” long and short-term counterparty credit ratings in 2007. He said that the stable outlook reflected by Standard & Poor’s means that Doha Bank will continue to strengthen its market position and retain its solid financial profile. He also reiterated that these ratings upgrade reflect Doha Bank’s very strong financial performance, improved asset quality enhanced by superior portfolio granularity compared with peers’ and robust liquidity.
Mr Seetharaman concluded that - expansion of branch network in Qatar, opening of overseas branch in Dubai and rep offices in Shanghai, Turkey, Tokyo and Singapore, launch of Insurance subsidiary in Qatar, Acquisition of stakes in brokerage house in Doha Brokerage and Financial services, India, steady expansion in Capital base – with all these initiatives, the Bank is in path of a well diversified growth.
He acknowledged the vision and guidance of the Board, patronage of customers and the dedication of the management and staff towards this exemplary performance.
In the Caption: CEO of Doha Bank Mr. R. Seetharaman with senior officials at the Press Conference.
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