BARWA BANK GROUP BOARD OF DIRECTORS APPROVES FINANCIAL RESULTS FOR 2011
Barwa Bank Group announced that the Board of Directors, at its meeting held on 19th April 2012, approved the financial results for the year ended December 31, 2011.
The Group recorded very strong growth in both balance sheet and profitability, with Net Income for 2011 up by 882% at QR244 mn compared to QR 25mn in 2010. These results from the Shari'ah compliant banking group start-up, demonstrated an ability to generate revenue, keep costs under control and engineer an early move to profitability.
Key features of the 2011 financial results
Well planned growth with attention to risk management at all times
Total assets increased by 143% to reach QR19 bn, a result of 354% growth in the financing portfolio from QR 2bn to QR 9b, with customer deposits trebling from QR 3bn to QR 9bn.
Increased revenues with improved efficiency
Net income increased to QR244 mn, up by 882% compared to QR25 mn 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 costcontainment
Earnings-per-share increased from.15 Dirhams to QAR 1.30
Successful Capital Increase
Barwa Bank completed a successful capital increase a the end of 2011, a vote-of-confidence from its shareholders .The offering comprised 109,130,900 new shares for subscription and was intended to raise QR 1.7 bn. The overall value of shares subscribed reached QR 1.9bn, an over subscription of QR 233mn with coverage of 113%. Book value per share increased to QR 16.4 compared with QR 15.2 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
Operational growth and expansion
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.
