A robust digital transformation and steady performance accompanied by positive financial results,

 

The bank approves issuance of Additional Tier1 Capital Sukuk with a maximum limit of QR 4.9 billion

 

• Unveiling the new identity and digital transformation are among the most prominent achievements of 2020

• A strong performance in total asset standing at QR 86 billion, driven by a strong growth in the finance portfolio that exceeded QR 54 billion.

• Customer deposits reached QR 54 billion.

• Shareholders' equity exceeded QR 11.5 billion.

 

Doha – Qatar, 25 March 2021 – Dukhan Bank convened its ordinary and extraordinary Annual General Meeting on 24 March 2021 virtually at the bank’s headquarters. The meeting was chaired by HE Sheikh Mohammed Bin Hamad Bin Jassim Al-Thani, Chairman of the Board and Managing Director, with an 90% shareholder attendance. 

 

During the AGM, all items on the agenda were discussed including hearing and approval of the Board's Report for the year ended December 31, 2020, endorsing the bank’s proposals for future business plans. The AGM also approved the Board’s recommendation to distribute cash dividends amounting to 10% of the nominal value of the shares at the rate of QR 1 per share, along with the validation of the External Auditor's Report of the year ending December 31, 2020 and discussing the bank’s balance sheet for the year, including profits and losses. 

 

Additionally, the Assembly agenda included a discussion on the report of the Shari'ah Supervisory Board, approval of the 2020 financial statements and the Board of Directors remuneration, along with the appointment of external auditor and their fees for the financial year 2021.  

 

The general assembly also approved the issuance of Additional Tier1 Capital Sukuk of the bank’s capital base that is not convertible into shares, with a maximum value of QR 4.9 billion, or its equivalent in other currencies. The bank stated that sukuk will be issued gradually within three years and authorized the board of directors to determine the amount, terms and conditions and the currency of each issue. All of which will be followed in accordance with the terms and instructions of the Qatar Central Bank and concerned authorities. Moreover, the board will be responsible for getting the necessary approvals of the regulatory authorities as well as Qatar Central Bank.

 

The general assembly approved amending Article 16 of the bank’s articles of association based on the proposal and authorized the chairman of the board of directors to amend it and sign the relevant documents needed by the official authorities.

 

2020 Achievement: New Identity and Digital Transformation

 

H.E. Sheikh Mohammed Bin Hamad Bin Jassim Al-Thani, Dukhan Bank’s Chairman and Managing Director, presented a detailed report on the bank’s activities and financials, highlighting the most important results achieved in 2020. The bank recorded strong growth in total revenues by 15.7% which reached QR 3.8 billion, while total assets rose to QR86 billion (12%), supported by financing assets that exceeded QR 58 billion. The total customer deposits amounted to QR 54 billion, recording a growth of 12.5%. These positive financial results reflect the bank’s strong performance, its leading position in the Qatari market and the integrity of the risk management systems it follows. The positive results have been reflected clearly on the shareholders ’equity that exceeded QR 11.5 billion.

He went on to state that the bank’s outstanding financial results are parallel to the successful launch of the new commercial identity of Dukhan Bank which came a year and a half after the completion of the first banking merger in the State of Qatar, between Barwa Bank and International Bank of Qatar. In addition, it coincides with the economic and social challenges imposed by the COVID-19 pandemic reaffirming the bank’s commitment to provide innovative banking solutions in Qatar, and contribution towards strengthening the local banking sector in line with the goals of Qatar National Vision 2030.

 

In the context of its aspirations to emerge as 'Qatar's Bank of Choice' and to confirm this position, the new identity announced in October 2020 came in light of a significant positive digital transformation witnessed by the bank, to provide operational efficiency, profitability and a safe and seamless banking experience for its customers. This step is also reflected in an evolution in the bank’s methodology in terms of creating products and services that are aimed at enabling customers to carefully plan their financial present in line with urgent individual needs.

 

In view of the critical situation imposed by the pandemic, H.E. Sheikh Mohammed bin Hamad bin Jassim Al Thani praised the bank's outstanding performance, attributing success to the digital transformation undertaken as a top priority, which has been a champion in providing seamless financial services to its customers towards business continuity and uninterrupted banking services. These factors acted as the backbone in providing services without delay during the crisis. Moreover, the bank enhanced its online banking services portfolio through developing the website and mobile application, increasing the efficiency of the call center, and using Dukhan Bank’s contactless platform, D-Pay for making payments.

 

 

Focused response to challenges imposed by COVID-19 

 

In addition, H.E.  highlighted the vital role Dukhan Bank played in responding proactively to the economic impact of the pandemic. This included the launch of the (COVID-19) National Guarantee Program under the directive of Qatar Central Bank to alleviate the financial pressure on private companies and Small and Medium Sized Enterprises (SMEs). He also referred to other measures taken by the bank in a pragmatic and systematic manner within the framework of its crisis management plan in terms of protecting its staff as well as its customers. These measures included transferring most of the daily banking transactions from the branches to electronic platforms whilst ensuring smooth banking services, strengthening customers’ confidence in online banking services. This has been developed through focused awareness campaigns via social media urging everyone to fully commit to the preventive instructions issued by concerned authorities.

 

In the fourth quarter of 2020, the aforementioned achievements confirm Dukhan Bank’s standing amongst the 10 safest banks in the Middle East and the 10 safest Islamic banks in the GCC for the year 2020. The annual rankings of the safest banks in the world, taken from The American Global Finance magazine, have been a reliable measure of financial security for more than 25 years. The best banks are selected based on evaluation of long-term foreign exchange  ratings from international credit rating agencies: Moody's, Standard & Poor's, and Fitch; as well as the quality of the banks' financial performance. HE Sheikh Mohammed Bin Hamad Bin Jassim Al-Thani, Chairman of the Board and Managing Director further added that Moody's had confirmed the Dukhan Bank’s long-term credit rating at A2 / Prime-1, with a stable outlook, alongside Fitch’s affirmation at “A”. Both ratings reflect the strength and robustness of the Qatari economy as well as the bank’s independent credit, which exhibits strong financial assets positon and an ability to play a leading role in the Islamic banking sector in Qatar.

 

Prizes along with the bank transformation

 

In parallel, the relentless efforts of the Board of Directors and all employees of the bank during the past year were met with prestigious awards in several fields, Most User Friendly Mobile Banking Application – Qatar 2020, International Finance Awards, and Most Progressive Bank Award, The New Age Banking Summit. Additionally, International Business Awards granted Dukhan Bank three distinguished awards, which included Banking CEO of the Year Qatar 2020 for Mr. Khaled Al-Subeai, Best Retail Bank Qatar 2020, and The Most Innovative Bank Qatar 2020. Moreover, Dukhan Bank won the Most Innovative Islamic Banking Product – Thara’a – Qatar, 2020, Global Business Outlook Awards 2020, and the Most Innovative Banking Brand, Qatar 2020 - Global Brands Magazine.

 

Future Plans

 

In terms of future plans, Sheikh Mohamed Bin Hamad Bin Jassim Al-Thani, Dukhan Bank’s Chairman and Managing Director, pointed to a positive outlook stemming from new economic opportunities pouring into the country. The bank will spare no effort to gain the largest possible share of financing infrastructure projects and provide all possible support to contribute to the growth of the country's economy. The bank will also continue, by all means, to working towards increasing shareholders returns through an expansion of activity in the State of Qatar.

 

As for its staff and human resources, the bank continues its Qatarization plan by attracting young, qualified, scientifically, and practically qualified Qatari talent to assume their role in leading the bank to the first ranks within Islamic financial institutions.

 

Dukhan Bank continues to implement its extensive strategy in providing more advanced digital services in 2021, with plans centered around the launch of more contactless payment products in the coming period. The bank seeks to provide the best innovative services to its customers, and to give them the latest, most secure, and safe payment solutions that are available anytime anywhere, taking advantage of its vast portfolio of online banking services.

 

Dividend Distribution

 

The distribution of the dividend cheques for the fiscal year 2020, will begin on Sunday 28 March 2021. For those listed on the Dukhan Bank shareholder register, dividends will be deposited directly into their shareholder accounts.