Barwa Bank held its Annual General Meeting (AGM) on the 13th June at which the financial results for 2011 were approved. The Chairman, Sheikh Mohamad Bin Hamad Bin Jassim Al Thani, gave a detailed report on the bank’s activities and financial results and highlighted the results achieved by the bank in 2011.
The Group recorded very strong growth in both balance sheet and profitability, with Net Income for 2011 up by 882% at QAR244 million compared to QAR 25million in 2010. These results from the Sharia compliant banking group start-up, demonstrated an ability to generate revenue, keep costs under control and engineer an early move to profitability.
Well planned growth with attention to risk management at all times.
Total assets increased by 143% to reach QAR19 billion, a result of 354% growth in the financing portfolio from QAR 2billion to QR9billion, with customer deposits trebling from QAR 3billion to QR9billion.
Net income increased to QAR244 million, up by 882% compared to QAR25m in 2010, as Barwa Bank Group achieved strong growth across a range of businesses. In addition, the Group undertook a number of consolidation initiatives designed to drive efficiency across its support and administrative functions, a contributor to effective cost-containment. Earnings-per-share increased from.15 Dirhams to QAR1.30.
Barwa Bank completed a successful capital increase at the end of 2011, a vote-of- confidence from its shareholders .The Rights Offer comprised 109,130,900 new shares and raised QAR1.7billion in a transaction that was 13% oversubscribed. Book value per share increased to QAR16.4 compared to QAR15.2 at 31 December 2010. This capital increase will enhance the Group’s position in the Qatari market and ensure that it can deliver on the commitment to development of Qatar’s economy
The Group was among the first to benefit from the QCB ruling regarding the closure of the Islamic windows of conventional banks and announced the acquisition of IBQ’s Al Yusr Islamic retail banking operations in August, a move that added to the bank’s customer base and branch network and allowed Barwa Bank to close the year with a network of six branches, having started 2011 with only one. The transaction was later awarded “Qatar Deal of the Year” by Islamic Finance News.
During the year, Barwa Bank launched “Prestige Banking,” aimed at its more affluent customers to provide them with a tailored suite of services that reflect their requirements and lifestyle as well as a Private Banking proposition, targeted at high net worth individuals.
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