Barwa Bank Group net profit rises to QAR 738.8 mn for 2016
Board of Directors recommends distribution of 13.5% cash dividend to shareholders
Barwa Bank, Qatar’s most progressive Shariah compliant service provider, announced its financial results for the year ending 31st December 2016, where the group has recorded a net profit of QAR 738.8 million and earnings per share rose to 2.49 Qatari Riyals. The financing portfolio increased by 4.5% from last year to QAR 29.8 billion. The group’s total assets stood at QAR 46.0 billion, a growth of 2%, and customer deposits increased significantly by 17.7% to QAR 29.9 billion showing customers’ confidence in the Bank due to its innovative and large range of products and superior customer service.
Commenting on the results, HE Sheikh Mohamed Bin Hamad Bin Jassim Al Thani, Chairman and Managing Director, said:
“These results demonstrate the strength of the Group and its financial position and strategy. In spite of the difficult and challenging conditions being faced throughout the region due to a tightening of liquidity, Barwa Bank Group focused on the balanced growth of the finance and investment portfolios, with the objective of maintaining the quality of assets, improving performance efficiency and increasing shareholders’ returns. Based on these impressive results, the Board of Directors recommended distribution of cash dividends to shareholders at a rate of 13.5%, amounting to 1.35 Qatari riyals per share. I would like to express my sincerest thanks to all employees of the Groups for their hard work, dedication and innovation.”
On the same note, Mr. Khalid Al Subeai, Barwa Bank Group Chief Executive Officer, said:
“Barwa Bank Group continued its strong performance evidenced by an increase of 16.4% over last year’s revenues surpassing QAR 2.0 billion. This was accomplished by relying on the diversification of income sources and growing its customer base. The Group was able to improve operational efficiency and reduce expenses by 5.6% during 2016 while increasing its customer deposit base by 17.7%. This was achieved by adopting a policy of innovation in providing products that meet customer needs and increased focus on customer satisfaction. The growth witnessed by the Bank during the year was combined with a balanced risk management policy - the non-performing loans accounted for just 1.5% of the net financing portfolio – which is a reasonable level given global indicators. In order to reduce funding costs; secure mid to long term funding; and bridge the maturity gap, an equivalent of QAR 2.2 billion was raised through Sukuk based financing which effectively contributed to strengthening financial position of the Group.”
In line with the Bank’s efforts to expand and increase its footprint, Barwa Bank has opened its City Center branch ensuring better customer service and achieving a balanced geographic spread across Doha.
The Group has also continued its policy of Human Capital development and the support of Qatari leadership. The Bank continued to onboard strong Qatari candidates and develop their skills and potential in order to empower them to assume leadership roles in the Group and effectively contribute to the development of the State of Qatar.
The Board has declared the date of the Barwa Bank Shareholder General Assembly to take place on Monday, 27 February 2017, to discuss the Board of Directors report for the financial year 2016, the Bank’s future plans along with discussion on the financial accounts and statements and the auditor’s report for the fiscal year ending 31 December 2016. The Assembly agenda will also include discussion on the report of the Shariah Supervisory Board, approval of the 2016 financial statements, and to approve the Board’s recommendation to distribute a cash dividend of 13.5% of the nominal share value as well as approving the Board of Directors remuneration along with the appointment of external auditor and their fees for the financial year 2017.