The Resolutions of the General Assembly Meeting of the Shareholders
H.E. Sheikh Fahad Bin Mohammad Bin Jabor Al-Thani, Chairman of Doha Bank, announced that the Ordinary General Assembly of the Shareholders in its meeting held on 16th March 2020 endorsed the Board of Directors’ corporate Governance report for year 2019 and Board of Director’s remuneration policy, risk-based performance evaluation policy, dividend policy, related parties’ transactions policy and policies, nomination and governance committee policy. It also endorsed the balance sheet and profit & loss account for the financial year ended on 31/12/2019 and the Board’s recommendation to carry forward the net profit after deductions to the following year. During the same meeting, H.E. the Chairman and Board members were discharged from the responsibility for the year 2019 and agreed not to pay remunerations for board members for this year. He also stated that the AGM has appointed KPMG to audit Doha Bank’s accounts for the year 2020 and approved by uncontested election the nomination of the below mentioned candidates to the membership of the Board of Directors for the next three years 2020, 2021 and 2022:
- Mr. Ahmed Abdul Rahman Yousif Obaidan
- Mr. Ahmed Abdulla Ahmed Al Khal
- Sh. Abdullah Mohammed Jabor Al-Thani
- Sh. Abdul Rahman bin Mohammed bin Jabor Al Thani
- Fahad Mohammed Jabor Holding Co.
Represented by Sh. Fahad bin Mohammed bin Jabor Al Thani - Jasim and Falah Trading & Contracting Co.
Represented by Sh. Falah bin Jasim bin Jabor Al Thani - Mr. Naser Mohammed Ali Al Mathkoor Al Khaldi – Independent Director
- Mr. Abdullah Ali Abdul Rahman Al Abdulla – Independent Director
- Mr. Naser Khalid Naser Abdullah Al Misnad – Independent Director
His Excellency also announced that in the Extra Ordinary General Assembly meeting, the shareholders approved the issuance of Additional Tier 1 (AT1) and/ or Tier II Capital Instruments amounting up to USD (1) one Billion either directly or through a Special Purpose Vehicle (SPV) as per the terms of the issue which shall include but not limited to the following:
- The issuances should qualify as Capital Instruments (AT1 or Tier II) as per Qatar Central Bank (QCB) terms and regulations.
- Issuance can be through a public issue and or a private placement, in local and / or international markets.
- To set up of a new EMTN program which complies with Capital Instrument issuance regulation. The program will be capped at USD (1) one Billion.
- The issuances can be in local or major foreign currencies .
- Tier II issuance will not exceed USD 500.0 Mn (or its equivalent).
- The maturity of the Additional Tier 1 instrument shall be perpetual and that of Tier II to be limited to 10 years.
- To authorize the Board of Directors of Doha Bank and those authorized by the Board to determine all terms and conditions and take all necessary actions to execute these issuances after obtaining relevant approvals from Qatar Central Bank and other competent authorities.
- Delegation from EGM of Shareholders to the Board will be valid for 3 years.
H.E. Sheikh Fahad Bin Mohammad Bin Jabor Al-Thani extended his sincere thanks and gratitude to the Board members and to the shareholders, representatives of the supervisory authorities in the State of Qatar and the auditors for attending these meetings and wished them all the success and prosperity.
Fahad Bin Mohammad Bin Jabor Al-Thani
Chairman
Statement of H.E. Chairman of the Board
The General Assembly Meeting Held on March 16th, 2020
In the Name of God, Most Gracious, Most Merciful,
Dear Shareholders,
Ladies & Gentlemen,
Al Salamu Alaykum…
On behalf of myself and the members of the Board of Directors (BOD’s), I would like on this occasion to give you all my sincere thanks for attending the Ordinary and Extraordinary General Assembly Meetings to discuss the topics on the agenda.
Please let me share with you the financial results of the bank for this year. The Bank’s audited financial statements for 2019 showed that the bank has achieved an increase of QR 12 billion in total assets which stood by the end of the year at QR 108.2 billion. Net loans and advances reached to QR 65.8 billion compared to QR 59.8 billion in 2018. The investment portfolio amounted to QR 26.6 billion, registering an increase of 28.1%. Total customer deposits stood at QR 58.5 billion as at 31 December 2019 compared to QR 55 billion in 2018, and total shareholder’s equity by the end of 2019 reached QR. 13.3 billion.
The income statement shows that the net profit at the end of the year amounted to QR 754 million compared to QR 830 million in 2018 due to significant provisions taken in Qatar and overseas branches and to meet the requirements of IFRS9 and Qatar Central Bank to strengthen the financial position of the bank. Moreover, the average return on share stood at QR. 0.17 and the return on average shareholders’ equity reached (6%) and the return on average assets amounted to (0.74%). Based on these results, the BOD, in consultation and coordination with Qatar Central Bank and external auditor, decided to present a recommendation to the AGM to carry forward the net profit after deductions to the following year for the following reasons:
- Increasing the capital adequacy ratio: Retaining the profit of 2019 will strengthen the Bank’s shareholders’ equity which will have a positive impact on increasing the capital adequacy ratio and would enhance the bank’s capacity and its ability to grow its investments and credit portfolios in different business areas and that will increase the income of the bank in the coming years.
- Improving the earnings per share: supporting the Bank’s shareholders’ equity by carrying forward the profit will enhance earnings per share from the net profit in the coming years as the profit retention would have a positive impact on increasing the Bank’s investment capacity without increasing the number of shares.
- Maximizing shareholders’ wealth: Retaining the profit of 2019 is considered self-financing and it will strengthen the bank’s investment ability which will have a positive impact on maximizing shareholders’ wealth that will result in increasing in the market value of the share.
- Raising the risk reserves coverage: Risk reserves usually play as defense lines for any credit risks to which the banking sector may be exposed in light of the changing banking environment at the local, regional and international levels.
- Continuing to maintain high credit ratings from global rating agencies: Positive impact on the capital adequacy ratio, the bank’s profitability, risk reserves and stability in the market on the share’s prices will be positively reflected on the bank’s continued ratings from rating agencies within high investment grades.
It is worth mentioning here that Doha Bank’s team made concerted efforts during the past year to carry out a comprehensive plan to adopt a digital and technological transformation strategy in light of the digital revolution and technological development in the world today. We have engaged international leading firm for the purpose of enhancing the services and products provided to our retail and corporate customers to enhance the level of excellence and professionalism compared with the competitive international and local banks, in addition to reducing the costs to achieve the highest returns and profitability which will ultimately serve the interests of the shareholders.
In order to strengthen the Corporate Governance framework in the bank, we have approved several policies including the policies mentioned in the AGM’s agenda for review and approval. These policies have been uploaded on the bank’s website under the shareholders’ section. Moreover, the BOD’s also enhanced the concept of internal controls, transparency, disclosures, shareholders relations and stakeholders’ rights, etc. The BOD’s report on Corporate Governance for the year 2019 is readily available to you in this meeting for your review and approval.
On behalf of the Board of Directors and myself, I would like to extend my sincere thanks and gratitude to H.H. The Emir, Sheikh Tamim Bin Hamad Al-Thani, H.E. The Prime Minister, Sheikh Khaled Bin Khalifa Al-Thani, H.E. The Minister of Finance, Mr. Ali Sharif El-Emadi, H.E. The Minister of Commerce and Industry, Mr. Ali Bin Ahmad Ali Al Kuwari, and H.E. The QCB Governor, Sheikh Abdullah Bin Saoud Al-Thani, and to all officials of Qatar Central Bank, the Ministry of Commerce and Industry, Qatar Financial Markets Authority and Qatar Exchange for their continued cooperation and support.
Many thanks and appreciation to all the shareholders and customers for their confidence in the bank and to the Executive Management and all staff of the bank for their continuous cooperation and efforts during the year.
Fahad Bin Mohammad Bin Jabor Al-Thani
Chairman