OREANDA-NEWS. The Commercial Bank Q.S.C. (“Commercial B ank” or “the Bank”) , its subsidiaries and associates announced today its financial results for the nine month period ended 3 0 Sep tember 2015 . The B ank reported a net profit of QAR 1,341 million as compared to QAR 1 , 553 million for the same period in 2014 , a decre ase of 13.7%.

Key financial highlights compared to the same period in 2014:  Net operating income up 4 % to QAR 3,058 million  Net profit of QAR 1,341 million  Total assets up 4.3 % to QAR 119 . 2 billion  Customer loans and advances up by 3.8 % to QAR 7 3.4 billion  Customers’ deposits up 10.3 % to QAR 64. 1 billion  Earnings per share of QAR 3.98

His Excellency Sheikh Abdullah bin Ali bin Jabor Al Thani, Chairman of the Board of Directors of Commercial Bank, said, “The global economy continues to adjust to the challenges of a lower oil price, a continuation of low global interest rates, and a moderation in emerging markets’ economic growth. Despite these challenges, Qatar’s economy continues to diversify, recording the highest non - oil GDP growth rate in the GCC region. Commercial Bank’s strategy, guided by its Board of Directors, enables it to take advantage of Qatar’s growing private sector, utilising our 40 year heritage of servicing the financing needs of growing companies in Qatar and the region.”

Financial Performance

Commenting on financial performance, Mr. Hussain Al f ardan, Commercial Bank’s Vice Chairman and Managing Director said , “Commercial Bank has continued to build on its strategy of creating sustainable value for our customers and shareho lders. The continued successful execution of our strategy means that Commercial Bank remains well positioned to generate value even as we expect the growth of our markets to moderate. Commercial Bank delivered a solid performance for the nine month perio d of 2015, delivering a 4 % increase in net operating income to QAR 3,058m . C ommercial Bank’s UAE associate partner United Arab Bank has experienced difficult market conditions resulting in prudent provisioning during the period, which has affected our net profit.”

Net operating income increased by 4 % to QAR 3,058 million for the nine months ended 30 September 201 5 , up from QAR 2,934 million achieved in the same period in 201 4 .

Net interest income was QAR 1, 903 million for the nine months ended 30 September 201 5 , 2 % lower than the same period of 201 4 , mainly due to a reduction in asset yields at AlternatifBank (“ A B ank ”) . Net interest margin decreased marginally to 2. 5 % as compared to 2.6% in the same period in 2014.

Non - interest income was up by 16 % to QAR 1,155 million for the Nine Months ended 30 September 201 5 compared with QAR 996 million . The overall increase in non - interest income was due to higher net fee and commission income , higher foreign exchange gain s and profit on sale of property , which was partially offset by lower income from investments securities .

Total operating expenses were up by 3 % at QAR 1,256 million for the nine months ended 30 September 2015 compared with QAR 1,220 million for the same period in 2014 .

The Bank’s net provisions for loans and advances were QAR 544 million for the nine months ended 30 September 201 5 , up 44 % from QAR 377 million for the same period in 2014 . The non - performing loan ( NPL ) ratio has reduced to 3.6 % at 30 September 201 5 compared with 3.7 % at the end of September 201 4 and the coverage ratio increased to 81.3% as at 30 September 2015 compared to 68.3 % as at 30 September 2014 .

Impairment provisions on the Bank’s investment portfolio reduced to QAR 25 million for the nine months ended 30 September 2015 compared with QAR 43 million for the same period in 2014 . Commercial Bank delive red balance sheet growth of 4 % at the end of September 2015 with total assets at QAR 11 9 .2 billion, compared to QAR 114.3 billion at the end of September 2014 . T otal asset growth was driven mainly by an increase of QAR 4. 8 billion in investment securities and QAR 6 billion in customer deposits.

Loans and advances to customers were up by 3.8 % to QAR 7 3 . 4 billion at 3 0 September 2015 compared with QAR 70.7 billion at the end of September 201 4 . The growth in lending has been generated, mainly in Services and C onsumption Sectors .

Investment securities is up 35 .1 % to QAR 1 8.4 billion as at 3 0 September 2015 compared with QAR 13.6 billion at the end of Sep tember 2014 . The increase is mainly in Treasury bills issued by the Central Bank and government bonds.

Customers’ deposits increased by 10.3 % to QAR 64. 1 billion at 3 0 September 2015, compared with QAR 58.1 billion as at 3 0 September 2014 . The increase was mainly in time deposits.