Commercial Bank Net Profit in 2016 Drop 64% to QR 500.8 Million

February 22, 2017  

Net profit of the Commercial Bank in 2016 fell 64.3% to QR 500.8 million compared to QR 1401 million in the corresponding period last year. Earnings per share stood at QR 0.86 versus QR 3.92 in the corresponding period in 2015. The Board of Directors recommended distributing bonus shares by the rate of 5%, i.e. one share for every 20 shares.

The Group Securities Comment:

Commercial Bank net operating income in 2016 declined 9% to QR 3.59 billion, of which QR 2.34 billion   net interest income. Net loan impairment losses rose by 50.6% to QR 1.27 billion, staff costs settled slightly higher at QR 872.3 million.  Depreciation and amortization expenses increased to QR 241.6 million. As a result, net profit attributable to shareholders decreased 64.3% to QR 500.8 million. There was profit from the re-evaluation of real estate worth QR 1265 million, a loss in the fair value and    the comprehensive income achieved a profit of QR 840.5 million to reach QR 1342.8 million.