Al Khaliji H1 profit up 11%

Al Khaliji (KCBK), the next generation bank in Qatar, achieved net profit of QR290.5 million for the first half of 2013, 11 per cent higher than the same period in 2012.

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Published: Sat 24 Aug 2013, 10:02 PM

Last updated: Tue 7 Apr 2015, 4:48 PM

Its net profit jumped 14 per cent to QR159.0 million in the second quarter 2013 against the same period last year.

Al Khaliji continues to achieve a consistent growth in net profit quarter after quarter registering a growth of 21 per cent over the previous quarter (Q1 2013). Al Khaliji France’s net profit was QR39.4 million by end of June 2013.

Al Khaliji ‘s customer deposits stood at 18.6 billion, 46 per cen higher than first half of 2012 and seven per cent increase in the first six month of 2013.

Commenting on the strong financial performance, Rob McCall, group chief executive officer of Al Khaliji said: “These results confirm the effectiveness in implementing our strategy for 2013 and beyond. We continue to build momentum to meet our set targets for 2013. This success is attributable to our diverse and prudent growth approach in ensuring that our customers’ expectations and requirements are not only met but exceeded.”

Income statement highlights:

The net profit for the first half of this year stood at QR290.5 million, 11 per cent higher than the QR261.9 million generated during the first half of 2012.

A total of 83 per cent of revenues continue to be generated mainly from the Qatar based conventional banking activities. The remaining 17 per cent was generated from al Khaliji France, its wholly owned subsidiary headquartered in Paris (France) with its four branches in four different emirates in the UAE.

The net operating income for H1 2013 was QR515 million, 12 per cent higher than H1 2012.

The investment income at QR121 million is lower than H1 2012 by 22 per cent. This result demonstrates once again that we are in line with our new strategy by reducing dependence on Investment income as we continue to grow our conventional business.

“Al khaliji has been consistent in delivering sustained and successful growth. This has been possible by recognising our most valuable assets, our employees. We will continue to develop, recognise and reward their committed efforts,” McCall said.

Balance sheet highlights

Total assets increased by 17 per cent compared to H1 2012 to reach QR32.6 billion. Total assets have declined by three per cent this year. Al Khaliji France’s represented 11 per cent of the group’s total assets.

Loans and advances for the first half of 2013 stood at QR14.9 billion, 30 per cent higher than the same period of the previous year and 14 per cent higher comparing to end of December 2012.

Deposits grew by seven per cent to QR18.6 billion in the first six months of 2013.

Loans to deposits ratio was 81 per cent at the end of June 2013.

Earnings per share reached QR0.81 for the first six months of this year, up 11 per cent compared to the same period in 2012.

The capital adequacy ratio was at 20.1 per cent and Tier 1 capital ratio at 18.7 per cent.

By the end of June 2013, the non-performing loans were QR60.2 million and our NPL ratio improved to 0.40 per cent.

Sheikh Hamad bin Faisal bin Thani Al Thani, chairman and managing director of Al Khaliji said: “Al Khaliji recorded a robust profit due to the added momentum of our refined medium term strategy. Linked to this our high liquidity and capital position together with our prudent risk management practices, has laid a solid foundation for future growth. Qatar continues to be a very attractive market for local, regional and international investors; and we remain well positioned, with our understanding of the Qatar banking sector, to capture future growth.”

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