Lesha Bank LLC (QFBQ) Earnings Call Transcript & Summary

[Interpreted] [Foreign Language] and good afternoon, everyone. Welcome to QFB's Half 1 Investor conference Call for the Financial Results. I would like to introduce the representatives from QFB, Mr. Rajesh Bansal, Chief Financial Officer; and Mr. Muzaffar Nazirov, Director Finance. We may start the session now. And after the session, we may open the forum for any questions. Thank you.

[Foreign Language], everyone. Welcome to QFB's H1 investor presentation. First of all, I would like to take you briefly through the results that we have achieved for the 6 months, and then we are open to take some questions from there on. The H1 2021 has been a very good period for us. We have achieved a net profit of QAR 41 million in the 6 months, and this is a significant overachievement over the last year. Last year, we had a loss. But this year, we have been doing very well, and we have a profit of QAR 41 million. Our total income is QAR 107.2 million, and we have a total asset base of QAR 2.8 billion. Our asset base has been stable over the last year, and we also have a very stable deposit base of QAR 1.2 billion. Our return on equity has been around 15.7%, which is an annualized return on equity. And further, we have achieved efficiency in our cost by reduction in the expenditure, and our expenditure for the half year has been around QAR 41.6 million. Now just to give you some key highlights. Our financing assets have reduced from QAR 500 million to QAR 400 million, and this is on account of the bank's strategy to focus more on the other products. Our assets classified as held for sales has decreased and this is primarily on account of onboarding of the new real estate products in the U.S. as an indication. Now on the investment side, the bank has been able to successfully exit out of some private equity deals, recording a good disposal gains for the 6 months. Further, in order to stabilize the future stream of income, the bank added sukuk and sukuk funds of QAR 110 million during the first 6 months. We have a conscious strategy to focus more on the investment products. Therefore, we are reducing our financing assets. And accordingly, our financial assets have slightly come down. The bank has also diversified its funding base by attracting interbank soft term deposits. And accordingly, we can see that we have a QAR 500 million of short-term deposits in the period ending 30th June 2021. Apart from that, we are at -- whatever is the Stage 3 exposure, which is there in our books, that has been adequately provided, and you can see that there is around 92% provisioning which exist in our books. Therefore, in the quarter ended 30th June, we made QAR 20.4 million; and in the last quarter, we made QAR 20.6 million. Accordingly, the total profit is QAR 41 million for the H1 2021. This is the key financial highlights. If there are any questions, we can take it from here. Thank you.

Thank you, Mr. Rajesh, Chief Financial Officer of QFB. So we would like to open the forum. If you have any questions, please feel free to ask.

[Foreign Language]