(The Group’s Comment) Commercial Bank Net
Profit Up 175.5% to QR1.66 Billion in 2018
Ø
Profit: Commercial Bank's profits amounted to QR 1,663.2 million in 2018,
compared to QR603.7 million in 2017. The bank’s earnings per
share reached QR3.52, versus QR0.91 in 2017. The adjusted net
profit after interest paid to the owners of the first tranche
stood at QR 1,423.2 million, compared to QR363.65 million for
2017. Profits improved by a decrease in the size of the
provisioned expenditure from profit for 2018 bad debts of loans
and advances to QR769.0 million, compared to the previous year.
Ø
Comprehensive income: The total comprehensive income of 2018 amounted to QR 1,238.9
million. The statement of comprehensive income recorded a loss
of QR424.3 million from foreign currency translation differences
for the year 2018.
Ø
Assets: The assets amounted to QR135.070 million by the end of 2018,
compared to QR138.449 million the previous year of 2017, a
decrease of 2.44%. This drop was due to a decrease of 8.13% in
loans and advances to customers. Loans and advances constitute
62.00% of the total assets of the bank as of the end of 2018.
Ø
Quality of assets: Non-performing loans reached about QR4.89 million in 2018, a total
of 5.59% in loans and advances, compared to QR5.27 million in
2017 and 5.65% in loans and advances. The ratio of
non-performing loans stood at 78.7% in 2018, compared to 81.0%
in the previous year.
Ø
Shareholders' Equity: It reached about QR 15,999 million in 2018, down 6.0% compared to
the previous year. The decrease was due to the Bank's
implementation of Standard No. 9, which led to a decrease in the
risk reserve by about QR1.00 billion in 2018. Commercial Bank’s
share book value amounted to QR39.53 and return on equity
reached 8.90%.
Ø
Revenues: Net interest decreased by 1.40% to reach QR 2,482.3 million by the
end of 2018, compared to QR 2,518.3 million in 2017. This
decrease is due to higher interest expense (cost of deposits)
than the increase in interest income, which climbed by 36.0%
between 2017 and 2018.
|
Q1
|
Q2
|
Q3
|
Q4
|
Total
|
Net Interest Income
|
659.23
|
669.21
|
579.96
|
573.92
|
2482.32
|
Net Profit
|
404.69
|
450.36
|
404.56
|
403.56
|
1663.17
|
Ø
Dividends: Commercial Bank’s Board of Directors recommended the General
Assembly to distribute 15.0% (3.62% dividend yield) of the
nominal value of capital as cash dividends for the year 2018,
compared to 10.0% in 2017.
The stock is currently traded at a PE
multiple of 11.76 times, and a book value multiple of 1.05
times.
|