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DOHA BANK ANNOUNCES BALANCED SECOND QUARTER RESULTS
His Excellency Sheikh Fahad Bin Mohammad Bin Jabor Al-Thani, Chairman of Board of Directors of Doha Bank, announced Doha Bank's financial results for the first half of the year 2008. Net profit for the first half of 2008 rose to QR 579.20 million, compared to QR 462.50 million for the same period in 2007, registering an increase of more than 25%. Earnings per share, after considering the equity injunction by way of 15% rights issue in second quarter 2008, increased to QR3.59 when compared to QR 2.94 in the corresponding period of previous year, maintaining the profitability growth percentage of 25%. Net interest income rose by 45.50% to QR 465 million. Exchange income rose by 55.80% to QR 34.10 million. The net operating income during the same period has increased from QR 710 million to QR 933 million with an increase of 31.4%, reflecting the core-earning potential of the Bank. The deposits have grown by 50.30% to QR 25 billion from QR 16.60 billion for the same period last year. Net loans & Advances as at 30 June 2008 increasing by QR 6.80 Billion, registering a growth more than 41% when compared with net loans & advances as at 30 June 2007. Total assets increased to QR 36.70 billion as at 30 June 2008 registering a growth of 38%, from QR 26.60 billion as at 30 June 2007. H.E. Sheikh Fahad said 'The Bank has become extremely strong over the years with shareholders' funds, as at the 30 June 2008, at QR 4.8 billion, registering an increase of 52.10% during the last twelve months. The share capital has organically increased over the years and as at 30 June 2008 our share capital is at QR 1.72 billion. The 15% rights issue by us in the second quarter 2008 had been oversubscribed by more than five times reflecting the strong confidence the bank enjoys from its shareholders and this region. The strong shareholder's funds along with the strategic utilisation of the rights issue proceeds as well as the increasing performance levels have resulted in return on average equity at 30%, as at 30 June 2008 the best in the industry. The Bank has again managed to achieve a very high return on the average assets of 3.47% which is a clear demonstration of the effective utilization of shareholder's funds and optimum asset allocation strategies'. Further, Sheikh Fahad said 'The Bank's core revenue streams, like interest income, foreign exchange earnings etc., have shown remarkable growth reflecting on the Bank's intrinsic strength towards recurring earning capacity. In fact cost to income ratio of the Bank is less than 30% as at 30 June 2008, indicating the productive operational performance of the Bank'.
On the business diversification strategies adopted by the Bank, H. E. Sheikh Fahad said 'Our Dubai Branch was officially inaugurated on 10th June 2008 under the patronage of H.H. Sheikh Maktoom Bin Mohamed Bin Rashed Al Maktoom, being the first bank from State of Qatar to operate full-fledged branch operations in United Arab Emirates. Further, our full-fledged branch operations in the State of Kuwait became operational since 22nd June 2008. These, cross-border operations within the GCC are primarily designed to cater to the growing bilateral demand for banking, trade, investment and finance needs of Qatar, UAE and Kuwait and enabling Doha Bank in partnering itself towards nation building'. Talking on the accolades and ratings recently conferred on Doha Bank, H.E. Sheikh Fahad said 'Doha Bank has been conferred with the Best Bank in the State of Qatar 2008, by the Euromoney Awards for Excellence. Further, the Bank was also conferred with the Best Globalisation effort of a Middle Eastern Bank 2008 and Best Green Bank 2008 by the Banker Middle East Magazine, these validating the pioneering role played by Doha Bank in Qatar and Middle East region. Further, Capital Intelligence has recently upgraded our long term rating to A, short term rating to A2, financial strength to A with a stable outlook and Fitch Ratings has assigned us long term rating at A, short term rating at F1, financial strength at C with a stable outlook, these indicating our bank's strong financial fundamentals, asset quality, and robust liquidity'. Mr. Seetharaman attributed the forward looking vision of board, high level of commitment of management and staff, customer care, best suite of products and services, and ongoing product and service improvement as the main reasons for Doha Bank reaching this coveted position. He said Doha Bank has been applauded by various highly respected financial sector specialists for its pioneering and leadership role in taking Financial Services experience in Qatar and Middle East to new heights. He concluded saying, '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'.
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