Commercialbank delivers a strong 2008 first quarter financial performance

"Commercialbank has consistently demonstrated its ability to deliver strong growth in income and profit and we have done so once again in the first quarter of 2008. Our strong performance is a confirmation of the successful realization of our growth strategy and gives us great confidence for the future".

Mr. Hussain Al Fardan, Commercialbank's Managing Director, highlighted the key features of the first quarter performance. "Total assets reached QR48.8bn, compared with QR31.5bn as at 31st March 2007.

Total loans and advances were QR27.4bn, (QR19.2bn in 2007), and customers' deposits (including unrestricted investment deposits owners' equity) totalled QR28.4bn (QR18.1bn in 2007).

Net interest income grew by 10.9% to QR222.4m and non-interest income (net of unrestricted investments deposit owners' share of profit) climbed by 59.4% to QR348.9m.

We continue to run our operations efficiently, with our cost:income ratio improving to 26.4% from 27.6% in the first quarter of 2007".

Mr. Andrew Stevens, Group Chief Executive Officer, said, "Commercialbank has delivered a strong performance in the first quarter of 2008, which is a reflection of the continued favourable economic conditions being experienced in Qatar. The performance of National Bank of Oman and United Arab Bank, in which we own interests of 34.85% and 40% respectively, continues to be extremely encouraging.

Capital management is a current area of key focus for Commercialbank.

We aim to ensure that we have a capital base sufficient to cope with future growth, both organically and through acquisitions, to meet the requirements of Qatar Central Bank and the ratings agencies, and the returns expected from our shareholders who provide us which such valuable support.

We will achieve these aims through a number of capital raising exercises during the year.

We are clearly focused on our objective to develop strong customer franchises by providing great value for our customers, which will in turn enable us to deliver strong results to our shareholders, and we remain very positive about the prospects for the remainder of 2008".