Commercial Bank QSC's net operating income decreased by 11% to QAR2,733 million for the nine months ended 30 September, down from QAR3,058 million achieved in the corresponding period in 2015.
Net interest income was QAR 1,800 million for the nine months ended 30 September 2016, 5% lower than the same period of 2015, mainly due to an increase in cost of deposits. Net interest margin decreased to 2.3% as compared to 2.5% in the same period in 2015.
Non-interest income was down by 19% to QAR 933 million for the nine months ended 30 September 2016 compared with QAR 1,155 million. The overall decrease in non-interest income was due to lower net fee and commission income.
Total operating expenses were up by 2% at QAR 1,235 million for the nine months ended 30 September compared with QAR 1,256 million for the corresponding period in 2015.
The bank's net provisions for loans and advances were QAR 1,108 million for the nine months ended 30 September, up 104% from QAR 544 million for the corresponding period in 2015.
The non-performing loan (NPL) ratio has increased to 5.3% at 30 September 2016 compared with 3.6% at the end of September 2015 and the coverage ratio was 78.8% as at 30 September 2016 compared to 81.3% as at 30 September 2015.
Impairment provisions on the Bank's investment portfolio increased to QAR 68 million for the nine months ended 30 September 2016 compared with QAR 25 million for the same period in 2015.
Chairman Sheikh Abdullah bin Ali bin Jabor Al Thani said: "Commercial Bank has proudly served the financial needs of its customers for over 40 years by always looking forward to the future. I, together with my fellow Board members, are resolved to maintain the development of Commercial Bank.
"Through our new executive leadership, and under the guidance of the Board, we are taking necessary decisions now to reshape a strong Commercial Bank for the future. Commercial Bank continues to have great potential to generate long term value for our customers and investors. Our decisions now will ensure that we unlock the Bank's full potential."