Commercialbank forms strategic alliance with NBO

Commercialbank is planning to consolidate its presence in the UAE and other Gulf countries following a strategic alliance with National Bank of Oman, bank officials said yesterday.

"National Bank of Oman has a fully licensed branch operational in Abu Dhabi, which represents for Commercialbank an indirect entry point to the UAE," said Andy Stevens, chief executive officer of Commercialbank.

"We are keen on consolidating our position in the UAE and other Gulf markets and leverage all the opportunities that are there to take."

Stevens was addressing reporters at a press conference to announce the bank's financial results for the first half of 2005.

Stevens said National Bank of Oman (NBO) has branches in one Middle East and four GCC countries, Bahrain, Oman, Qatar, UAE and Egypt, offering an extensive network and new entry ports for the Qatari bank's operations.

Last week, Commercialbank announced the acquisition of a 34.9 per cent stake in NBO. The operation included an increase in the bank's capital by 44.5 million Omani riyals, from 105.5 million riyals to 150 million riyals through a private placement.

With regard to the financial results for the first first half, Stevens said Commercialbank posted net profits of 327 million Qatari riyals, an increase of 81 per cent over the corresponding period last year.

Total assets rose from 10.7 billion riyals in 2004 to 17.4 billion riyals, an increase of 64 per cent.

Total loan assets grew by 45 per cent from 6.1 billion riyals to 8.8 billion riyals. Total gross income rose from 255.7 million riyals to 466.2 million riyals.

On Saturday, Qatar National Bank (QNB) also announced its financial results for the first half of 2005.

The bank posted net profits of 705 million riyals, an increase of 71 per cent over the same period last year.

Total operating income increased by 71 per cent to 1,006 million riyals.

Total assets grew to 44.2 billion riyals since December 2004.