Al Khalij Commercial Bank (al khaliji) PQSC released its consolidated financial statements for the first quarter of 2018, which ended 31 March. The bank reported a Net Profit of QAR 169.6 million, representing an increase of 5.3% over its financial results for the same period last year.

Sheikh Hamad Bin Faisal Bin Thani Al Thani, Chairman and Managing Director of al khaliji said that their sustained financial strength will allow them to continue fulfilling their strategic objectives for 2018 and beyond.

Fahad Al Khalifa, al khaliji’s Group Chief Executive Officer said that the key contributor to the increased operating income was Net Interest Income, which grew by 5.7%, compared to Q1 2017.

This was a key goal in 2017 and remains so in 2018. We also reported healthy growth in non-interest income in line with our strategy of maintaining a diversified revenue base.

According to Al Khalifa, they generated topline growth by de-leveraging non-core and low yielding assets, effectively managing the bank’s funding base. 

As we grew top line revenues, we maintain focus on operating costs, which are lower by 3% compared to Q1 2017, resulting in an improved efficiency ratio of 26% which is one of the best in Qatar.

Risk management continues to remain at the heart of al khaliji’s operating philosophy, as their proactive approach in managing their loan portfolio, matched with a conservative approach to provisioning has led to a reduction in net impairments compared to the same period last year. Notwithstanding the introduction of IFRS 9 effective January 2018, net impairment charges were lower by 6% compared to the first quarter last year.

Their Balance Sheet also remains strong and liquid with 26% of Total Assets comprising cash and high quality investment securities, and their Liquidity Cover Ratio (LCR) is well above the minimum Regulatory requirement.  The Capital Adequacy Ratio remains robust at 16.6%.

Al Khalifa also said that Qatar’s economy is solid and they commenced their journey in 2018 with renewed optimism. He said that they will continue to support their clients by working closely with them and further strengthening their franchise in Qatar. He said that they remain confident that this efforts will translate into improved financial metrics.