A strong performance in total asset standing at 46 billion QR, driven by a strong growth in the finance portfolio that reached 29.8 billion QR. Customer deposits reached 29.9 billion QR with a 17.7% growth rate.
Doha – Qatar, 28 February 2016
Barwa Bank convened its Annual General Meeting (AGM) on Monday the 27th of February 2017, chaired by HE Sheikh Mohamed Bin Hamad Bin Jassim Al Thani, Chairman of the Board and Managing Director, with an 85.15% shareholder attendance, at the Al Mirqab Hall at the Four Seasons Hotel.
During the AGM, all items on the agenda were discussed, such as hearing and approving the Board’s Report for the year that ended December 31, 2016, as well as discussing and approving the group’s future business plans. This also came in line with the approval of the Board’s recommendation to distribute cash dividends amounting to 13.5% of the nominal value of the shares at the rate of one riyal and thirty five dirhams per share, along with the validation of the External Auditor’s Report of the year ending December 31, 2016 and discussing the bank’s balance sheet for the year, including profits and losses.
The Assembly agenda also included discussion on the report of the Shariah Supervisory Board, approval of the 2016 financial statements, as well as approving the Board of Directors remuneration along with the appointment of external auditor and their fees for the financial year 2017.
H.E. Sheikh Mohammed Bin Hamad Bin Jassim Al-Thani, Barwa Bank’s Chairman and Managing Director, presented a detailed report on the bank’s activities and financial results, highlighting the most important results achieved by the bank in 2016. The Group recorded strong growth in each of the financial position and profits, as the net profit for 2016 rose to QR 738.8 million and earnings per share reached QR 2.49.
These results were actualized despite the challenges faced banking sector in particular, and the overall market. Such perseverance came at a time during which the economy faced a liquidity freeze, along with an increase funding costs and the negative decline in oil prices, during which Barwa Bank Group was able to maintain its profitability and increase its market share.
The focus in 2016 was directed to consolidate the bank’s foundation in the local market and to increase its market share, as the Group showed a strong performance represented by an asset growth reaching up to QR 46 billion, driven by a strong growth in the financing portfolio, which amounted to QR 29.8 billion at a growth rate of 4.5% from the previous year, while customer deposits stood at QAR 29.9 billion at a growth rate of 17.7%.
The growth in the Group’s business and the increase in its funding and investment activities, go in line with maintaining asset quality and risk management policies, with total non-performing loans accounting for just 1.5% of the net financing portfolio. Out of the Group Management’s keenness on increasing shareholder returns and dividends, it has worked on controlling and rationalizing the cost base and the adoption of a work structure that is marked by quality, flexibility and efficiency, as the expenses decreased by 5.6% during 2016.
With the board of directors’ firm belief in the importance of human capital, which is considered the main factor in the Group’s success and its ability to achieve its goals, continued efforts are being poured into attracting practically and academically qualified Qatari youth talent to assume their role in leading the Group and bring it to front ranks among Islamic financial institutions.
Due to the national economy’s provision of promising opportunities and an investment climate that is comparable to the major economies, the Group will spare no effort to gain the largest possible share of financing infrastructure projects and providing all possible support to contribute to the growth of the country’s economy. The Group will also continue, by all means, working to increase shareholders returns through an expansion in activity in the State of Qatar.
Distribution of Dividend Checks
The distribution of the dividend checks for the fiscal year of 2016, beginning from Monday 6 March 2017, will take place during official working hours, at the Barwa Bank main branch located at Grand Hamad Street. At which point their dividends will be deposited directly in to the shareholders accounts, listed on the Barwa Bank shareholder register.
© Press Release 2017
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