Al Khalij Commercial Bank (al khaliji) PQSC reported a QAR 454 million net profit for nine months, covering the period of up to 30 September 2017. This was driven by a strong growth of 7% in operating income, effective cost management leading to lower operating expenses, and continued prudent provisions on their credit and investment portfolios.

Sheikh Hamad Bin Faisal Bin Thani Al Thani, Chairman and Managing Director of al khaliji said that they delivered a solid performance which reflects the resilience of their business model and the strength of the Qatar economy. He added that al khaliji is well positioned to deliver sustainable results into the future.

al khaliji officials
al khaliji Chairman Sheikh Hamad Bin Faisal Bin Thani Al Thani (right) and GCEO Fahad Al Khalifa

al khaliji Group Chief Executive Officer Fahad Al Khalifa attributed their performance to the bank’s Qatar-centric strategy and the strength of the local economy.

Our results for the nine months reflect our Qatar-centric strategy and the continued strength of the local economy.  We have taken the steps necessary to navigate the challenging circumstances and ensure revenue growth, prudently manage our loan portfolio, and at the same time strengthen our funding base.

Our Net Interest Income (NII) at QAR 751 million for the period shows a growth of 12% year on year. We achieved this by continued focus on margins across the Group.

We continue to maintain strong control of our operating costs, resulting in an improved efficiency ratio of 27.4% by end of September, compared to 30.7% for the same period last year.  As a result, our operating profit before impairment charges was higher by 12% compared to September 30, 2016.

We retain our focus on all risks including credit risk.  We continue to prudently take credit impairments resulting in a pragmatic approach to building provisions. This is reflected in higher impairment charges of QAR 220 million to September 30, 2017.

The growth in operating income, coupled with our effective cost management has resulted in a Net Profit of QAR 454 million, an increase of 7% on the same period last year.

We continued to grow our local loan book, with loans and advances increasing by 2.1% compared to June 2017. Our customer deposits at QAR 32.2 billion also grew by 8% compared to last year. Our Balance Sheet remains strong and liquid with 28% comprising cash and investment securities and a Capital Adequacy Ratio of 16.4%.

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.’

Key highlights – Q3 2017

Income Statement

  • Net Profit of QAR 454 million compared to QAR 425 million for the same period in 2016. The bank’s Qatari operations continue to remain the main contributor
  • Net operating income of QAR 932 million, an increase of 7% compared to last year
  • Net Interest Income of QAR 751 million, an increase of 12% year on year
  • Impairment charges of QAR 220 million, reflective of continued conservative provisioning
  • Earnings per share of QAR 1.26, up 7% compared to the same period last year

Balance Sheet

  • Total assets at QAR 57.9 billion, with a strong and liquid balance sheet
  • Net loans and advances at QAR 35.95 billion an increase of 2% on Q2 2017 as we continue to remain cautiously selective of sectors we lend.
  • Deposits at QAR 32.2 billion were up 8% compared to September 30, 2016
  • Our liquidity position remains strong with 28% of our balance sheet comprising of cash and investment securities and our Liquidity Coverage Ratio (LCR) significantly higher than minimum regulatory requirements


The bank’s capital adequacy ratio in Q3 2017 was at 16.4% per Basel III.

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