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Banking & Commerce

al khaliji Reports Net Profit of QR 320 Million for First Half of 2017

Net Interest Income increased 9% Year-on-Year to QR 496.2 million
Net Operating Income reached QR 609.8 million, up 3.4% compared to last year
Deposit growth of 5.7% to QR 32.2 billion

Al Khalij Commercial Bank (al khaliji) PQSC, announced its financial results for the first six months of 2017, reporting a net profit of QR 319.8 million. This was driven by a growth of 3.4% in operating income, effective cost management leading to lower operating expenses and prudent provisioning on the credit portfolio.

Sheikh Hamad Bin Faisal Bin Thani Al Thani, Chairman and Managing Director stated that al khaliji’s good performance reflect the strength of the business and fortitude of the team.

We continue to deliver on our strategic objectives, and little has changed in this regard, despite the current challenges. The bank is a highly rated institution headquartered in Qatar whose economy is very strong with huge reserves. al khaliji has a strong and bright future.’

Speaking of their half-year performance, Fahad Al Khalifa, al khaliji’s Group Chief Executive Officer said:

Our performance for the first half of 2017 reflects the strength and resilience of our business in challenging circumstances.  In line with our strategy, we have been prudent in growing our business, strengthening further our funding base, and reporting a net profit of QR 319.8 million for the first half of 2017.  The local franchise in Qatar continues to drive the growth in operating income.

We continue to deliver on our strategic objective of delivering long-term sustainable revenues. Our NII at QR 496.2 million for the first half improved by 9% year-on-year. Improving our NII has been a key goal for us and was achieved by more focused asset and liability management.  The bank’s strong cost control policy has delivered an efficiency ratio of 28% end June 2017, compared to 32% for the same period last year. As a result, our operating profit before impairment charges was higher by 9% compared to H1 2016.

al khaliji has a heightened focus on all risks including credit quality which remains high on our agenda.  The bank is carefully managing its credit impairments and has adopted a pragmatic approach to building suitable provisions to protect against potential future shocks. This is reflected in higher impairment charges of QR 115 million to June 2017, and has resulted in consistent H1 profits YoY.

The strength of our local franchise in Qatar has been recognised with a number of independent awards in the second quarter of 2017. QDB awarded us, Best Partner Bank for our work with them in advising and financing local companies in the SME sector as part of the Qatar’s ongoing strategy to further develop the private sector. We were also awarded, Best Corporate Bank in Qatar by the Banker, Middle East as well as Fastest Growing Private Bank in the Region by the International Finance Magazine.

The economy in Qatar remains strong and supporting our domestic economy remains at the heart of our strategy. We will continue to support our clients by working closely with them and providing innovative financial solutions, this will allow us to continue to grow our franchise in Qatar.’

al khaliji officials

al khaliji Chairman Sheikh Hamad Bin Faisal Bin Thani Al Thani (left) and Group Chief Executive Officer Fahad Al Khalifa

KEY HIGHLIGHTS – H1, 2017 RESULTS:

Income Statement

  • Net Profit of QR 319.8 million compared to QR 320 million for the same period in 2016. Our Qatar operations continue to remain the main contributor
  • Net operating income of QR 609.8 million, an increase of 3.4% compared to last year
  • Net Interest Income of QR496.2 million, an increase of 9% year on year
  • Impairment charges of QR 115 million, reflective of  continued conservative provisioning
  • Earnings per share of QR 0.89, similar to the first half of 2016

Balance Sheet Highlights

  • Total assets at QR 58.2 billion, with a strong and liquid balance sheet
  • Loans and advances at QR 35 billion consistent with last year as we continue to deleverage some of our overseas operations
  • Deposits at QR 32.2 billion were up 5.7% compared to June 30, 2016, reflective of our continuous efforts to strengthen our funding base
  • Our liquidity position remains strong with our Liquidity Coverage Ratio (LCR) significantly higher than minimum regulatory requirement

Capitalisation

The bank’s capital adequacy ratio in the first half of 2017 was 15.73% as per Basel III.

al khaliji Report

For more information on al khaliji, visit alkhaliji.com.

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