al_khaliji_Head_Officeal khaliji (KCBK), in Qatar, announced its financial results for 2013, reporting a robust growth of 8% in Net Profits (QR551 million). This includes the financial results of Al Khaliji France S.A., QR68 million, an increase of 10% year-on-year.  

The consolidated financial statements for the year ended 31 December 2013 were approved by the Board of Directors of al khaliji during its meeting held in Doha on 23 January 2014. The figures are subject to Qatar Central Bank’s approval. al khaliji’s Group Chief Executive Officer, Robin McCall, said:

There is much to be positive about with regards to al khaliji’s performance in 2013. We have made considerable progress in delivering on the strategic priorities we set ourselves and have generated a respectable growth in Net Profit.  Delivering an enhanced banking experience to our preferred customers is a key objective we have set ourselves, and I am pleased to say we have made broad strides in this area…As 2013 was the initial year in our three-year road map it was important for us to prioritise and deliver on certain objectives to ensure we are well positioned to continue to build scale in our clearly defined market segments. In 2014 we will continue to focus on areas that represent the best opportunities for al khaliji, to achieve a continued strong and sustainable growth rate. We will communicate our preferred customer message of being more exclusive and tailored, and make our market presence felt.’

Income Statement highlights

al khaliji declared a Net Profit of QR551 million, 8% higher than last year. A total of 80% of revenues was generated from the Qatar based banking activities, and the balance from its international operations.

A key objective of the bank’s Medium Term Strategy 2013-2015 is to ‘continue to grow the core banking franchise and gradually reduce reliance on investment revenue streams over time.  This year’s results reflects positive developments in this regard; Net Interest Income is materially higher than in 2012, up 16% to QR590 million, and Net Fee and Commission Income doubled in size to QR143 million. Conversely the contribution from our Investment book reduced by 54%, QR214 million, during this time period. This effective re-balancing of the bank’s income streams was achieved while maintaining steady levels of Operating Income year-on-year, being QR942 million in 2013 versus QR969 million in 2012.

Balance Sheet highlights

The Group experienced strong growth of 59% in Loans and Advances to QR20.7 billion and this drove Total Assets to QR41.3 billion, the highest ever achieved by the Group. The Deposit base expanded to QR19.9 billion representing an increase of 15% on the prior year.

Provisioning

On 31 December 2013, the non-performing loans were at QR70.2 million compared to QR59 million in the previous year. The NPL ratio improved from 2012 and was at 0.34% by end of 2013. Commenting on the profit performance, Balance Sheet growth and profile, McCall, stated:

Growth has been solid across all core business areas in our identified market segments. We have increased our geographic reach to new touch points in North Africa and witnessed impressive returns from non-funded trade-flow related business. In late October, the bank issued its extremely successful debut bond of US$500 million under its newly established US$750 million Euro Medium Term Note Programme. This was an important milestone in the maturity curve of al khaliji. In tandem with these achievements, the bank has maintained a high credit rating and outstanding asset quality, with an NPL ratio of 0.34% at year end.’

Robin McCall, al khaliji's Group Chief Executive Officer
Robin McCall, al khaliji’s Group Chief Executive Officer

Based on the strong financial results the Board of Directors is recommending to the General Assembly the distribution of a 10% cash dividend of the nominal share value i.e. QR1 per share. McCall said:

The bank has been consistent in generating strong and sustainable returns for its shareholder both from a dividend and capital perspective. It is our intention to uphold this principle in the future.’

Earnings per Share and Capitalisation

Earnings per share were at QR1.53 by the end of 2013, 8% higher than 2012. The capital adequacy ratio was at 18.4% and Tier 1 capital ratio at 16.7%. Expressing his gratitude on the impressive performance of al khaliji for 2013, HH Sheikh Hamad bin Faisal bin Thani Al Thani, Chairman and Managing Director said:

The Bank’s strategy and successful business model continues to differentiate us from our competitors and once again have enabled us to deliver strong results. We appreciate the confidence of our shareholders and remain committed to continuing to deliver robust growth and consistent returns. Our strong capital base, deliberate customer focus, and specific business model positions us well for the future. I would like to thank our employees for the work that they do in serving our clients, supporting our communities and helping al khaliji achieve business success.’

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Balance Sheet indicators (QR million)

2013

2012

2013/2012

Loans and advances to customers

20,697

13,032

59%

Investment securities

13,898

15,865

-12%

Total assets

41,259

33,672

23%

Customers’ deposits

19,919

17,346

15%

Shareholders’ equity

5,637

5,671

-1%

Income statement (QR million)

2013

2012

2013/2012

Net interest income

590.5

511.0

16%

Net fee and commission income

142.8

73.2

95%

Net operating income

942.4

968.9

-3%

Net income

550.9

512.2

8%

2013

2012

2013/2012

Earnings per share

1.53

1.42

8%

Group ratios

2013

2012

Liquidity (%)
Loans to Deposits

105

77

Loan Quality
Non-Performing loans (QR million)

70.2

59.0

NPL ratio (%)

0.34

0.45

Capital Management (%)
Tier 1 capital ratio

16.7

19.4

Capital adequacy ratio (CAR)

18.4

21.4

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al khaliji is Qatar’s pioneer ‘next generation bank’ offering a full range of conventional banking products and services to premium, business, corporate and international customers in Qatar, UAE and France. Headquartered in Doha, al khaliji is one of Qatar’s leading banks and a member of the Qatar Exchange since 2007, with QR34.6 billion in total assets and QR17.8 billion in customer deposits as of 30 September 2013. Al Khaliji France is al khaliji’s subsidiary in Paris, France, with a network of branches in the UAE covering Dubai, Sharjah, Ras Al Khaima and Abu Dhabi. This branch network offers customers and businesses local, regional and international banking services.