Al Khalij Commercial Bank (al khaliji) PQSC released its consolidated financial statements for 2018, reporting a strong increase in net profit, registered at QAR608 million as of 31 December.
The consolidated financial statements were approved by the Board of Directors of al khaliji during its meeting held in Doha recently. The figures are subject to Qatar Central Bank approval and AGA endorsement.
Sheikh Hamad Bin Faisal Bin Thani Al Thani, Chairman and Managing Director of al khaliji said 2018 was another successful year for al khaliji.
Despite all the challenges, the bank’s strategy and successful business model enabled us, once again, to deliver strong results. We remain well-positioned to benefit from the economic expansion in Qatar that will remain robust and we look forward to a very successful 2019. We appreciate the confidence of our shareholders and remain committed to continuing to deliver robust growth and consistent returns.’
Commenting on the year’s performance, al khaliji Group CEO Fahad Al Khalifa, said the positive financial results are a culmination of better balance sheet management, focusing on improving margins, containing cost of funding, maintaining cost efficiency and strengthening capital and funding positions.
These results reflect our strategy of continuing to invest in the local economy, and supporting our local clients while we continue to grow our franchise in Qatar.’
Al Khalifa summed up their accomplishments in these statements below:
Throughout 2018, as part of our risk management activities one of the key priorities was active remedial management of weaker credits and the introduction of IFRS9. These efforts have resulted in a 40% reduction in impairment charges taken compared to 2017.
During 2018, we also continued to review our cost base, reducing the groups operating costs to QAR329 million to deliver an efficiency ratio of 28.8%.
We also successfully raised US$500 million under the banks EMTN programme, strengthening more our funding position. The issue was oversubscribed by more than three times and tightly priced, exhibiting the faith of debt investors in the bank’s performance and direction and the underlying strength of the Qatari banking sector. This will support long-term growth.
Our Liquidity Coverage Ratio (LCR) and Capital Adequacy Ratio (CAR) remain well above the minimum levels required by Qatar Central Bank. Our Balance Sheet remains strong and liquid with 30% of Total Assets comprising cash and high quality investment securities.
al khaliji remains active in the community, contributing to various associations/charitable institutions through donations and staff members voluntary work. We will continue to remain active in community activities during 2019.
Looking forward, al khaliji enters 2019 with a positive outlook. We will continue to build our business locally, and at the same time strive to attract the best local talents, to boost our Qatarisation levels, and to be an employer of choice. We look forward to a successful 2019.
After reviewing the audited finances, the Board was satisfied with the 2018 financial performance and has recommended (subject to QCB approval) to the Annual General Assembly the distribution of a cash dividend amounting to 7.5% of the nominal share value, i.e. QAR0.75 per share.