Commercialbank, Qatar’s first private sector bank, was established in 1975 and has gained international recognition for the high-quality services and products offered to its customers.
Robust growth, strong domestic franchise
Commercialbank is the leading private sector and second largest commercial bank in Qatar by total assets and shareholders’ equity. As a full service commercial bank, Commercialbank offers a complete range of corporate, retail, Islamic, and investment banking services as well as owning and operating exclusive Diners Club franchises in Qatar, Oman and Egypt. The Bank’s country wide network includes 29 full fledged branches, including 6 Al Safa Islamic branches and 138 ATMs. In more challenging market conditions, Commercialbank’s financial performance reflects the resilience of its business model, the strength of its commercial position and a stable financial profile. The Bank continues to focus on its core business competencies, with constant vigilance on risk management whilst maintaining a strong capital base and diversified liquidity position.
Listed on the Qatar Exchange, Commercialbank has a market capitalization of US$ 3.75 billion (July 09). The diversified shareholder base includes leading Qatari merchant families as core shareholders, individuals, and local and foreign institutional investors. Commercialbank is the first Qatari bank to list its Global Depository Receipts (GDRs) on the London Stock Exchange, and its offering in July 2008 was the largest globally distributed GDR issue out of the GCC region. Foreign investors are allowed to invest up to 25 percent of Commercialbank capital. The Bank’s EMTN programme and Floating Rate Notes are also listed on the London Stock Exchange.
In May 2009, a notable milestone of progress was achieved with the official inauguration by the Prime Minister of Qatar of the Bank’s new headquarters and branch at Commercialbank Plaza in the West Bay area. The Bank’s commitment to deliver innovative banking services to communities across Qatar was further underlined with the opening of a new branch at Porto Arabia on The Pearl Qatar in the first half of 2009.
Well positioned for sustained profitable growth
Profitable in every year since incorporation in 1975, proactive investments in technology and human capital, together with a strong capital base and underwriting capability, provide a solid foundation for continued growth. Total assets as at end June 2009 were QR 59.0 billion ($16.2 billion). During the first quarter of 2009, the Qatar Investment Authority (QIA) completed the first stage of the subscription process in the Bank’s share capital by investing QR 807 million ,representing 5% of the Bank’s share capital and further strengthening the Capital base to QR 10.5 billion ($ 2.9 billion). and the Capital Adequacy Ratio to 15.6%.
Success of regional diversification
A successful diversification strategy has expanded Commercialbank’s GCC footprint through strategic partnerships with its associated banks, National Bank of Oman (NBO) in Oman and United Arab Bank (UAB) in the UAE. NBO, the second largest bank in Oman with total assets of RO 1.8 billion as at 30 June 2009, has 59 branches in Oman, 5 branches in Egypt and 1 in Abu Dhabi. UAB is headquartered in Sharjah, with total assets of AED 7.0 billion as at 30 June 2009 and operates 9 branches in the UAE.
Commercialbank works in close partnership with both banks to increase synergies, cost savings and industry best practice across an increasingly unified structure, with shared business platforms. The strategic ‘Alliance Banks’ structure has greatly increased relationship access to financing and investment banking opportunities in the GCC region, and places the Group in a strong position to play a lead role in fostering the emerging private sector growth.Andy Stevens, the Group CEO, has been with Commercialbank since 1989 and heads a strong team of experienced bankers with regional and international experience.
Commercialbank is an active supporter of the communities it serves. Commercialbank supports a range of worthy causes in Qatar with emphasis on Health, Sport, and Education. Commercialbank is proud to have been the title sponsor of the Qatar Masters international golf tournament since 2006. It is committed to raising the profile of this event to scale new heights and put it on a par with other leading regional and international tournaments. The Commercialbank Qatar Masters, enjoys a global television audience of over 200 million people, and this is projected to grow as the scale and visibility of this event gain momentum. Commercialbank is also the title sponsor of the Commercialbank MotoGP, giving the Bank involvement in two of the most prestigious sporting events in Qatar. We are committed to using sport to project Qatar’s global appeal and use this sporting platform to project its heritage, culture and dynamic business environment on an international stage.
Inspired by Qatar, Commercialbank remains strongly positioned for continued growth and value creation.