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The Bank achieved a net profit amounting to QR 973.6 million by the end of the year 2009 with a growth in total operational income by 22%, where the increase in the operational income was QR 369.2 million. These strong results reflected positively on the efficiency ratios, where the return on the average shareholders equity was 21.7% and the return on average assets was 2.3%.
Based on these results, the Board of Directors passed a resolution at its meeting on the 20th January 2010, proposing the general assembly of shareholders to approve the distribution of a cash dividend of QR 5 per share or 50 per cent of the paid up capital.
Strategic Plan of the Bank
The strategic plan of the bank for next three years includes implementation of enhanced risk management strategies, both locally and globally and sharpening focus on attracting Qatari nationals and enhancing the level of their performance by employing them alongside highly qualified and experienced bankers. Special emphasis will be placed on training programs covering all functional levels. The plan also includes improving and developing governance levels and delivering state-of-the-art banking services, particularly e-banking, Islamic banking and improving the bank’s financial position by diversifying and increasing the overall quality of assets whilst maintaining exceptional operating results and achieving sustainable growth in the bank’s core earning capacity.
Furthermore, the plan is designed to diversify the bank’s sources of income with a particular focus on non-interest income. Cost management is also a key focus with the aim of adopting leading cost management practices and optimizing the cost of funds.
Product and Services
Similar to previous years, 2009 was a year marked with significant performance. New and advanced banking services and products had been launched in Islamic and e-banking which were customized to meet the needs and demands of the different customer segments in today’s markets.
During 2009, we re-structured a group of retail banking services in order to maintain their performance levels and confront the existing challenges in the market. The focus of this strategy was based on strengthening this group of services with highly qualified and experienced staff and on rendering a high quality service to customers. We also focused on the methods and mechanism to develop positive relationships with clients. In addition, we improved the complaint handling system, centralized operations for back office of the branches; standardised formats for the branches and the development of staff programs were initiated. For the purpose of upgrading clients’ services, we established “Tawasol” center, which is unique and one of its kind in Qatar.
During 2009, loans and advances products showed exceptional performance despite the current instability in the markets due to the global financial crisis. In February 2009, a pre-approved loans plan was launched which aimed to attract segments of new customers for the bank. In addition, such services are considered as means for retaining the existing customers. We conducted an additional survey in the market to identify the demands and needs of the clients, accordingly in August 2009, we introduced a new set of loans within the two categories of QR 50,000 and QR100,000 for the purpose of assisting the customers suitable for these loans to cover the expenses of their vacations during the summer season.
During the year, the bank carried out joint campaigns with many of the leading vehicle companies in Qatar, which included multiple features offered to the customers for vehicle loans of different brands such as Nissan, Infinity, Reno, Mazda, Mitsubishi, Suzuki and Mercedes. This campaign was supported by greater discounts and privileges during the month of Ramadan and the Eid festivals. Doha Bank was a pioneer in launching such campaigns in order to boost this sector.
Building on the earlier successes of Al Dana savings scheme for the sixth consecutive year, the Bank launched campaigns in 2009 with additional promotions for this product. Those campaigns included attractive monthly prizes of QR one million cash award draw. The Bank also organized the Al Dana Annual Race which was characterized as being an event for the conservation of the environment. This event was organized in cooperation with many authorities interested in the conservation of the Qatari environment such as the UNISCO, Qatar Green and the Traffic Department for the protection from road accidents.
Doha Bank also offered new products such as The Smart Deposit Account. This account was basically offered to encourage clients to save on a monthly basis. The clients’ benefit is to get a life insurance policy as soon as they open the account with the amount intended to be saved at the end of the agreed upon period. In addition to the deposits products with the pre-paid interest which was launched at a competitive interest rates where the client becomes eligible to enjoy the interest value in advance without the need to wait for maturity date. The Bank also achieved excellent results in the campaign of salary transfers where the Bank attracted new clients who were eligible to win a prize of their transferred salaries for one year.
As for credit cards, we provided attractive privileges’ to the joint American Express Gold Credit Card between Doha Bank and American Express. The card holders would benefit from using the travel lounges spread across the Middle East and enjoy shopping bonuses and the comprehensive insuranc during their travel. In addition, the card holders could retrieve 1% from their annual expenses. We also provided the bill payment service through directly deducting from their accounts via the internet or through the extensive network of branches.
Doha Bank has developed a loyalty reward program for Dream Credit Cards, offering card holders instant redemption of their points through a large number of point-of-sale machines available at all participating commercial outlets. During the year, numerous promotional campaigns were launched with different companies and merchants to offer Dream Card holders’ special prizes, discounts and utilizing these points to purchase travel tickets.
Furthermore, Doha Bank pioneered the launching of the first Green Credit Card in the GCC to support environment protection program. The Bank, through this card, supports the organizations and other bodies concerned in the conservation of environment by transferring the accumulated points from the use of those cards. To encourage the customers for participating in this program, the Bank distributes monthly prizes by visiting the winner in one of the famous environmental areas around the world. We also launched the first ATM Instant Platinum Debit Card in Qatar, issued for elite customers, who will enjoy greater privileges’ such as withdrawal limits and other services.
During the year, the Bank signed an agreement with Vodafone Qatar which provided many benefits and services to the customers of the Bank. Vodafone promoted the sales centers of Doha Bank branches to inform the customers of the Bank’s services and ease of access. The Bank also provided facilities to our customers such as payment of bills through direct debit from their accounts or instant payment through the internet channels.
Doha Bank once again broke new ground in launching the first web site for online shopping in the Middle East region. Presently, it covers Doha and Dubai markets for many products. This service, since its launch in 2007, has a strong potential for further success, where the customers through this service can purchase their needs and pay their values electronically.
In line with our aim to provide the best quality services to our customers, we enhanced and developed our electronic services through Instant Doha Bank such as electronic transfers, SMS messages, telephone and mobile services, internet, electronic branches and others. We also carried out modifications to the Doha Bank website and introduced security elements with greater effectiveness to protect our customers from various threats.
Awards
Due to the strong financial position enjoyed by Doha Bank and its pioneering role in delivering innovative banking products and services that enriched and expanded the experience in Qatar, the Bank was conferred appreciation and recognition from a number of professional banking institutions. In addition to the accolades awarded to the Bank in previous years, the Bank was conferred the award for “The Best Commercial Bank in the Middle East” for the year 2009 from the “Bankers Middle East Magazine”. The same magazine honored Doha Islamic in December of the same year with the award for ”The Best Local Islamic Bank in the Middle East” for the year 2009. The Bank was also awarded “The Best Internet Banking Website in Qatar” within the category of retail banking for 2009 by the Banking Websites Awards Committee, and also the award for “The Best Trade Finance Provider in the Middle East” from Global Finance.
Acknowledgement
The Board of Directors of Doha Bank would like to extend their sincere thanks and gratitude to:
- H. H. The Emir, Sheikh Hamad Bin Khalifa Al-Thani
- H. H. The Heir Apparent, Sheikh Tamim Bin Hamad Al-Thani
- H. E. The Prime Minister and Foreign Minister, Sheikh Hamad Bin Jassim Al-Thani
- H. E. Minister of Economy and Finance, Mr. Yousef Hussain Kamal
- H. E. Minister of State for Cooperation and Acting Minister of Business and Commerce,
- Dr. Khalid Bin Mohammed Al-Atiyyah
- H. E. The Governor, Sheikh Abdullah Bin Saud Al-Thani
- H. E. The Deputy Governor, Sheikh Fahad Bin Faisal Al-Thani
And to all supervisors of Qatar Central Bank, Ministry of Business and Commerce, Qatar Financial Markets Authority and Qatar Exchange for their continued support.
Finally, the Board of Directors would like to greet and thank all the shareholders, customers, members of the Sharia’a Board of Doha Islamic, the Bank’s Executive Management team and all staff for their continued efforts exerted in achieving the impressive results for Doha Bank.
Fahad Bin Mohammed Bin Jabor Al-Thani The Chairman
Board of Directors’ Report for the Financial Year Ended 31/12/2009
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