His Excellency Sheikh Fahad Bin Mohammad Bin Jabor Al-Thani, Chairman of Board of Directors of Doha Bank, announced Doha Bank's financial results for the year 2008. He said “Total assets rose by QAR 9 billion to QAR 39 billion in 2008, registering an increase of 30% when compared with 2007. Net loans & advances increasing by QAR 4.8 billion to QAR 24 billion in 2008, registering an increase of 25% when compared with 2007. Customer deposits increased by QAR 3.3 billion to QAR 23.30 billion in 2008, registering an increase of more than 16% when compared with 2007. Net Profit for 2008 was QAR 946.5 million with operating income of the bank increasing by more than 16% in 2008 when compared with 2007. We have continued with our credible performance ratios achieved through highest organizational and service level commitments again in 2008. In this regard the Board has also recommended 50% dividend payout for 2008 to its shareholders, who are our strong pillars of support all these years”.
H.E. Sheikh Abdul Rehman Bin Mohammad Bin Jabor Al-Thani, Managing Director of Doha Bank said “The Bank has become extremely strong over the years with shareholders’ funds, as at 31 December 2008, at QAR 4.9 billion, registering an increase of more than 36% during the last twelve months. Paid-up share capital of our bank has organically increased over the years and, as at 31 December 2008 it is QAR 1.72 billion, after the equity injection by way of 15% rights issue in the second quarter 2008. Our bank’s 15% rights issue had been oversubscribed by more than five times reflecting the strong confidence we enjoy from our shareholders and this region. The strong shareholder’s funds along with the strategic utilization of the rights issue proceeds as well as the increasing performance levels have resulted in return on average equity at 25.8%, as at 31 December 2008 the best in the industry. The Bank, given the scale of operations, has achieved a very high return on the average assets of 2.74% which is a clear demonstration of the effective utilization of shareholder’s funds and optimum asset allocation strategies”. Further, H.E. Sheikh Abdul Rehman said “The Bank’s core revenue streams, like interest income, foreign exchange earnings etc., have shown remarkable growth reflecting on the Bank’s intrinsic strength towards recurring earning capacity and also on the Bank’s productive operational performance”.
H.E. Sheikh Fahad said “In 2008 the bank has achieved all the goals outlined in the strategic plan and budget. 2008 achievements include enhancement and strengthening the bank's financial position and realizing the best ratio of return on shareholders’ equity in addition to launching numerous new banking services and products particularly in the fields of e-banking and Islamic banking. In 2008 the Bank also witnessed improvements in staff quality through the recruitment of highly qualified and experienced professionals for key managerial posts and expansion in the operations locally, regionally and internationally. The Bank has also focused on attracting Qatari staff, enrolling them for intensive training courses and deputing them in the bank’s international offices to provide them with rich work experience through its Global Training Program. These key achievements were well appreciated by the business communities”.
H.E. Sheikh Fahad continued “Locally, 4 new branches have been inaugurated in 2008 taking the total number of branches operating in the State of Qatar to 33 including 5 Islamic branches. Our bank also has 11 e-branches, 12 pay offices, 3 mobile branches and 109 ATMs deployed across the State of Qatar. Our strategic business model initiatives including the globalization vision was towards opening up commercial gateways for banking, finance, investments and trade among the trade blocs and in this respect as at 31 December 2008 we have full fledged branches in New York, Dubai and Kuwait, representative offices in Istanbul-Turkey, Tokyo-Japan, Singapore, Shanghai-China, Bucharest-Romania, Seoul-South Korea and London-United Kingdom, and an extremely strong network of correspondent banking relationship. Thus in 2008, foot prints of Doha Bank spreading to countries like Kuwait, South Korea, Romania and United Kingdom”.
Mr. R. Seetharaman, Chief Executive Officer – Doha Bank said “In 2008 Doha Bank successfully launched and operated its fully owned insurance company - Doha Bank Assurance Company licensed under Qatar Financial Center to underwrite general insurance business along with broking services currently provided through our associate – Doha Brokerage & Financial Services. In addition, we offer the most comprehensive set of products and services catering to financial needs of each sector of the business community. The recent one being, being acknowledging the role of Small and Medium Enterprises (SME) by way of introduction of product suite targeted specifically at the SME segment of the market to address their special needs”.
Mr. Seetharaman continued “The extra-ordinary general meeting of the bank in December 2008 approved the increase in the authorized capital of the bank by way of issue of new shares up to 20% of the paid-up-capital to Qatar Investment Authority. Consequently Qatar Investment Authority has decided to subscribe to 10% of the Bank’s share capital during 2009 in two equal phases. Accordingly, the Bank received share application money in advance constituting 5% of the paid-up capital by end of December 2008”.
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Talking on the future plans of the bank Mr. Seetharaman said “The Bank’s future plans include the continued implementation of effective risk management strategies both locally regionally and internationally. Our plan also focuses on attracting Qatari nationals and enhancing the level of performance by hiring highly qualified and experienced bankers. Special emphasis will be placed on training programs covering all the functional levels. We also aim delivering state-of-the-art banking services particularly in e-banking and also improving our financial position by further diversification on revenue streams, increasing the overall asset-base whilst sustaining the operating results and achieving balanced growth in the core revenue streams, like interest income, foreign exchange earnings etc.”.
Talking on the products and services of the bank Mr. Seetharaman said “In line with the remarkable quality of products and services offered in the last six years, 2008 also marked introduction of advanced banking services especially on Islamic and e-banking channels. In addition to the existing state-of-art electronic services already being provided through SMS, infovest, internet, e-branches, mobile branches and phone banking services, new services have been introduced and the current services have been continually enhanced”.
He continued “In early 2008 in collaboration with American Express we successfully launched and operated our co-branded Doha Bank Gold American Express card with unique product features targeting the high-income group. The new Dream Card Loyalty Program, payroll cards, click-cards (for online shopping needs) along with effective promotional campaigns were also successfully launched and operated in 2008. In addition, we also played a pioneering role in promoting state-of-the-art electronic services aimed at encouraging e-commerce throughout the Middle East region. Building on the previous successes of Al Dana savings scheme with added incentives we re-launched the promotion in 2008. This included a quarterly QAR 1 million cash award draw in addition to ten luxury car draws and a bumper draw for a residential unit in the prestigious Pearl-Qatar Island. This is in addition to the weekly and monthly prizes awarded to Al Dana customers on a continuous basis. Further, in 2008 the 4th series of Al Jana Fixed Deposit products was successfully launched and operated with attractive interest rates on terms extending from 1 to 5 years available in numerous popular currencies. A similar popular product that was also successfully launched during 2008 was the upfront interest fixed deposit product which was also the first of its kind in the State of Qatar yet another feat by Doha Bank”.
Mr. Seetharaman also said “Doha Bank has been applauded by renowned financial sector analysts, branding strategists for its pioneering and leadership role in taking Financial Services experience in Middle Eastern region to new heights. The 17th Asia Brand Congress in September 2008 conferred the “Brand Leadership Award” on us towards our successful brand journey over the last six years. Further, Euromoney award for excellence in 2008 and 2005 adjudged us as the Best Bank in Qatar while Banker Middle East adjudged us for the Best Globalisation efforts by a Middle East Bank and Best Green Bank for 2008. In addition, Banker Middle East adjudged us as the Best Commercial Bank for 2007, Best Bank in Middle East for 2006 and Best Commercial Bank in Middle East for 2005. Further, The Banker Financial Times adjudged us as Banker of Year for Qatar for 2003 and 2004”.