Doha Bank demonstrates sustainable performance with 24% increase in operating profit

Net profit for the first half of 2009 has increased by 12% to an impressive QAR646m, compared to QAR579m for the same period in 2008.

Net interest income rose by 14.8% to QAR534m, net Islamic financing income rose by 48% to reach QAR111 million and net operating income during the same period has gone up from QAR898m to QAR1,111m reflecting an increase of 23.7%. Total assets increased by QAR7bn, a growth of more than 19%, from QAR36.7bn as at 30 June 2008 to QAR43.8bn as at 30 June 2009.

Net loans & Advances increased to QAR23.6bn from QAR23.4bn for the same period last year, registering a growth of 1%, with Deposits of QAR23.6bn as at 30 June 2009 evidencing the strong liquidity position of the Bank.

His Excellency Sheikh Abdul Rehman Bin Mohammad Bin Jabor Al-Thani, Managing Director, Doha Bank said:

" The Bank has become extremely strong over the years with shareholders' funds, as at 30 June 2009, at QAR5bn, registering an increase of 5.9% during the last twelve months. The paid-up share capital of our bank has organically increased over the years and, as at 30 June 2009 it is QAR1.81bn reflecting the strong confidence we enjoy from our shareholders and this region. Through the strategic utilisation of the shareholder's funds by way of increasing our performance levels the return on average equity is 27% as at 30 June 2009 the best in the industry. The Bank, given the scale of operations, has achieved a very high return on the average assets of 3.12% as at 30 June 2009 which is a clear demonstration of the effective utilization of shareholder's funds and optimum asset allocation strategies."

Further, H.E. Sheikh Abdul Rehman said: "The Bank's core revenue streams, like interest income, foreign exchange earnings have shown remarkable growth reflecting on the Bank's intrinsic strength towards recurring earning capacity and also on the Bank's productive operational performance."

Talking on the key innovation and initiatives by Doha Bank in the first half 2009, Mr. R. Seetharaman, Chief Executive Officer said "Continuing with our tradition of first to introduce innovative trend-setting products and service, we successfully launched 'Green Banking' encouraging each and every Doha Bank customer towards protection of the environment through paper-less banking techniques. The green banking has been well received by our customers and many new customers have also subscribed to green banking with us.

In furthering the Green mission, Doha Bank Green Banking Team lead by Mr Seetharaman and UNESCO team lead by Dr. Benno Boer, Ecological Advisor had a meeting discussing approaches in greening the environment. Doha Bank and Unesco shared valuable knowledge on various fields of natural sciences and sustainable development.

In line with Doha Banks commitment to knowledge sharing in the GCC the Bank organized a seminar on "Global Trends Driving Change in the Middle East Payment Market" and it had huge success. There was a diverse mix of guests from all retail sectors, establishments & institutions and Doha Bank showcased its range of products and services that support merchants.

Doha Bank has been voted yet again as the "Best Commercial Bank in the Middle East". The accolade was granted by the prestigious Banker Middle East magazine in a glittering ceremony held at the Gulf Hotel, Bahrain on 10th June 2009. The awards evening was attended by H.E. Rasheed Mohammed Al Maraj, Governor of the Central Bank of Bahrain.

In addition to the hugely successful the Al Dana savings scheme that gives out QR One Million every month, Doha Bank also launched its annual salary transfer campaign under the caption of 'Double Your Salary' promotion. This campaign gives chance to all eligible new customers to double their salary for a whole year. Customers who transfer their salary during the promotion period will get a chance to enter the draw wherein one winner will win back their monthly salary for the next 12 months. This promotion is also combined with lots of benefits and attractive features.

Continuing in the tradition of product innovation, Doha Bank also launched a range of products and services called "Tatweer" uniquely tailored to the needs of small and medium sized enterprises.

Doha Bank also inaugurated its new Islamic branch at Al Wakra on 26th of February 2009. The branch is another addition to the wide network of Doha Islamic branches. Al Wakra Branch is going to offer Islamic Shari'a-Compliant services in this commercially active area.

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."

Mr. Seetharaman continued: "It is also a reflection of the strength of Doha Bank that Fitch Ratings has recently affirmed the banks Long Term Issuer Default Rating at "A" with a Stable Outlook. This shows that the underlying stability and financial strength of the Bank remains as strong as ever."

His Excellency Sheikh Fahad Bin Mohammad Bin Jabor Al-Thani also expressed thanks to the Government of Qatar in taking visionary and pro-active steps to support the banking sector in Qatar in relation to the support given for the Banks Doha Securities Market and real estate portfolios.