21-03-2021
Qatar First Bank announced the successful exit of CMRC Ltd., which is one of the bank's investment projects in the Middle East region.
The bank achieved an exit from its US $ 31.5 million investment and achieved a net internal rate of return of 19% as a result of the exit.
In 2015, Qatar First Bank acquired an average stake of 13.5% in CMRC Ltd., which is considered one of the largest and leading medical rehabilitation centers in the Gulf region. The company's sales increased from 15 million US dollars in 2015 to 54 million US dollars in 2020.
The successful exit from this investment project in the Middle East comes within the framework of Qatar First Bank's strategy to strengthen its liquidity and solvency, as well as the bank's focus on exploring new investment opportunities. The exit also comes within the framework of the bank’s plans to enter new markets and economic sectors through its investments, as well as its efforts to expand in multiple regions in the world.
Commenting on the successful completion of the exit process, His Excellency Sheikh Faisal bin Thani Al Thani, Chairman of the Board of Directors of Qatar First Bank, said: “We are pleased to announce the successful completion of the exit process from one of our important and profitable investment projects in the region. The strong performance of this project in recent years, as well as the significant net profits we have achieved from the exit from CMRC Ltd., have proven the pertinence of our investment choices in the region.”
His Excellency Sheikh Faisal added: “Our ability to achieve good profitability from this investment and rewarding returns on exiting it in light of an atmosphere of economic uncertainty due to the Covid-19 pandemic and its impact on a number of economic sectors is a strong evidence of the durability of our investments.”
On his part, Mr. Abdul Rahman Toutounji, Acting CEO of Qatar First Bank, said: “The successful exit from this investment project comes within the framework of Qatar First Bank’s endeavor to strengthen its investment portfolio in Qatar, in the region and around the world, and the bank will continue to advance its investment strategy and work to increase its presence in promising markets, while reducing its dependence on limited markets and economic sectors.
“In light of the gradual recovery of the global economy, we will continue to focus on investing in projects with sustainable profitability that are capable of achieving a growth rate according to risk, while maintaining our disciplined commitment to liquidity management and the readiness to deal with market variables,” added Mr. Toutunji.
It is noteworthy that Qatar First Bank recently announced its financial results for the year 2020, as it achieved a net profit of 1.2 million Qatari riyals at the end of the fourth quarter of the year, reducing its total net loss by 24% compared to the financial results of 2019. The bank also succeeded in increasing operational efficiency and rationalize expenses despite the repercussions of the pandemic, to reduce 6.9% of its total expenditures in 2020.