Net profit of Commercial Bank of Qatar up 55% to QR1.56bn in Q3 2008

The Bank's total assets at the end of the third quarter of 2008 stood at QR57.8bn, reflecting 41.7% growth from 30 September 2007. Total loans and advances similarly grew by 37.0% to QR32.1bn and Customers' Deposits by 19.2% to QR29.9bn.

During the first nine months of 2008, the Bank's capital base was strengthened by QR3.3bn, following the successful issue of 24 million new ordinary shares. The capital raising was accomplished as a three part process via a Rights Offering in June, a Global Depositary Receipt (GDR) Offering and a Private Placement of New Ordinary Shares in July. As at 30 September 2008 Total Shareholders' Equity amounted to QR10.2bn and Earnings per Share have risen to QR8.21 from QR5.54 at the same period last year.

His Excellency, Abdullah Bin Khalifa Al Attiyah, Chairman of the Board of Directors of Commercialbank, said:

"We are very pleased with this quarter's strong results. The scale of economic activity in Qatar and our diversification strategy have enabled robust growth in all of our core businesses. We must thank our loyal and supportive family of shareholders, old and new, whose confidence in the Bank and its management has contributed in large measure to our continued success."

Mr. Hussein Alfardan, Commercialbank's Managing Director, added: "The Bank's sustained growth and impressive operating performance over many years, together with the success of the regional strategy, have firmly established Commercialbank as a major GCC banking group."

Commercialbank's group strategy focuses on sustaining the robust growth of its existing key business lines, with ongoing investments in new products, human resources and technology. This has been coupled with strategic diversification into new business areas and work on optimizing business and cost synergies from the Group's expanded regional presence.

Andrew Stevens, Commercialbank's Group Chief Executive Officer, commented: "Commercialbank has a commitment to sustainable growth in all its core businesses, and to deliver enhanced value to its shareholders, customers, employees and other partners. The results reflect the Bank's strong overall performance. The strength and diversity of our income has been maintained and we are in a better position than ever before to build on this growth, both within the Qatar market and regionally."

During the third quarter high asset quality was maintained and efficiency ratios improved. Despite heightened competition and pressure on overhead costs, the Bank's Cost to Income ratio has been reduced to 22.0% from 23.9% in 2007. Return on Average Equity increased from 23.7% the previous year to 25.3% on a significantly larger capital base and Return on Average Assets also improved to 4.0% from 3.8% year on year.

Driven by strong performance across all business lines, Operating Income for the first nine months increased to QR2.14bn, representing a rise of 51.5% against the comparative period for 2007. Continued expansion in the private sector in Qatar and strong credit demand enabled a 37.0% year on year growth in loans and advances, with major contributions from trading, real estate, and services sectors as well as SME, contractor and GCC corporate business.

Al Safa Islamic Banking has continued to perform well with net profit climbing from QR24.33m in September 2007 to QR67.01m in September 2008, representing growth of 175%. Customers' deposits also increased to QR2.6bn from QR1.0bn year on year, and total Islamic assets reached QR3.8bn compared with QR1.4bn for the equivalent period in 2007.

In the retail banking business Commercialbank continued to derive competitive leverage in the first nine months of 2008 from product innovation, process improvement and expansion of the distribution network.

Commercialbank's affiliates - National Bank of Oman (NBO) and United Arab Bank (UAB), have recorded strong growth and profitability in line with the Group's expectations, contributing 9.9% of Commercialbank's net profit in the first nine months. In line with the Group's collaborative strategy, implemented across its affiliates, NBO and UAB continued to strengthen and align business strategy, systems and risk management practices.