The General Assembly Meeting Held on 27 February, 2011
The honorable shareholders and distinguished guests
Prior to presenting the agenda, I welcome and thank you for attending this meeting. I would also like to extend my thanks to the Members of the Board of Directors and the Executive Management Team for their efforts exerted during the past period towards the progress of the Bank which lead to achieving the best performance levels in the midst of fierce competition in the market and the continuing effects of global financial crisis that rocked the various capital markets worldwide.
As you are all aware, the implications of the global financial crisis which began at the beginning of the 4th quarter of 2008 still exist and has slowed economic growth including economies of the developed countries. As a result of that, many of these countries were forced to carry out unprecedented economic reforms to exit from this crisis. Due to the wise leadership of His Highness, Sheikh Hamad Bin Khalifa Al Thani – The Emir of Qatar – and the strength and durability of the Qatari economy, in addition to Qatar being the host nation of the World Cup in 2022, we are anticipating that Qatar will witness an unprecedented boom across all economic sectors and the launch of many development projects in the coming years, which will be positively reflected in the Bank’s performance level and lead to additional achievements’. This is a major reason why in December of the year 2010 we approved the amended Bank strategy for the years 2011 and 2012 in order to be in line with these expectations.
We also would like to note that during January, 2011 we have received the funds in relation to the additional contribution of 10% of the Bank’s capital from the Qatar Investment Authority.
Furthermore, in the same year, we achieved high growth rates in all financial indicators. The total assets rose to QR 47.2 billion which was an increase of 2.7% and the total portfolio of loans and advances increased by 2.5% and the total customer deposits grew by 10.5%, and the total shareholders equity rose to QR 6 billion which represented a growth of 3.1%. We also achieved net profit of 1.05 billion in the year 2010 compared to QR 975 million in the year 2009 which represented an increase of 8.3%, in addition to a 2.5% growth in operating income. These robust results translated into strong performance ratios and in-particular the return on average shareholders equity which was 21.4% and the return on average assets was 2.26%.
In terms of the three year strategic plan, it included the implementation of effective risk management strategies locally and globally. In addition, there is an emphasis on attracting Qatari nationals and enhancing the level of performance through hiring highly qualified and experienced bankers and the delivery of tailored training programs for all levels. The plan also includes strengthening the governance framework within the Bank and providing state-of the-art banking services and products in-particular e-banking and implicit marketing of services.
The plan also aims at strengthening the Bank’s financial position through diversifying the assets while maintaining highest level of efficiency in operational performance, and achieving sustainable growth in the Bank’s core income and diversifying income and in particular non interest income, as well as adopting and controlling leading cost management in a professional manner and maintain it within the levels that are in line with the banking sector industry, and optimizing the cost of financing.
In the area of Islamic banking products and services, in the year 2010, Doha Islamic launched additional advanced products and services and developed the existing ones. This was carried out because the Board of Directors is keen to satisfy the demands of various segments of customers. By the end of the year 2010, the total assets of Doha Islamic reached QR 3.8 billion, total financing activities reached QR 2.8 billion, and the total net profit of Doha Islamic reached QR 111.5 million.
On this occasion, on behalf of myself and the Board Members I would like to extend our deepest thanks and gratitude to H. H. The Emir, Sheikh Hamad Bin Khalifa Al-Thani, and H. H. The Heir Apparent, Sheikh Tamim Bin Hamad Al-Thani, and H. E. The Prime Minister and Foreign Minister, Sheikh Hamad Bin Jassim Bin Jabor Al -Thani, and H. E. Minister of Economy and Finance, Mr. Yousef Hussain Kamal, and H.E. Minister of Business & Trade, Sheikh Jassim Bin Abdul Aziz Bin Jassim Bin Hamad Al-Thani, and H. E. The Governor, Sheikh Abdullah Bin Saud Al-Thani, and H. E. The Deputy Governor, Sheikh Fahad Bin Faisal Al-Thani, and to all the officials of Qatar Central Bank, Ministry of Business & Trade, Qatar Financial Markets Authority, and Qatar Exchange for their support.
Finally, my thanks to all the Shareholders, Customers’, Members’ of the Sharia’a Board of Doha Islamic, Bank’s Executive Management Team and all Staff for their continued efforts in achieving the impressive results of Doha Bank.
Best Regards
Fahad Bin Mohammed Bin Jabor Al Thani,
Chairman