Al khaliji posts QR122mn profit on ‘strong fee income’

16/04/2012 08:11 AST

Led by “strong fee income”, Al Khalij Commercial Bank (al khaliji) posted a net profit of QR122mn in the first quarter of this year.

The bank’s customer deposits totalled QR12.1bn, up 25% on the same period last year. The first quarter results were announced after a meeting of the board of directors presided over by al khaliji chairman Sheikh Hamad bin Faisal bin Thani al-Thani yesterday.

Robin McCall, al khaliji group chief executive officer, said, “We continue to grow the bank in our targeted areas of expertise and we are pleased with the sustained growth since March last year. The corporate book continues to drive our business as treasury returns moderate in line with our planned strategy.”

On the bank’s Q1 performance McCall said, “al khaliji is managed and positioned for the long-term and this quarter’s performance is in line with expectations. A strategic priority for 2012 is to continue to strengthen the customer product proposition an area where al khaliji has been recognised as a market leader, as reflected in its recent award as the ‘Best Premium Bank in the Middle East’

Net interest income amounted to QR137mn in Q1, 2012. The net operating income reached QR216mn.

Al khaliji’s fee income grew by 15% and dividend income increased 10% on the same quarter in 2011. General and administration expenses was 10% lower than the same period last year. Qatar banking activities contributed 83% of the net operating income.

Al Khaliji France SA, a wholly owned subsidiary of al khaliji Group, contributed 17%. “Impairment losses on loans improved as the bank was able to benefit from net recoveries. Non-performing loans, at less than 1%, remain at low levels.

“Despite a large early repayment, loans and advances increased by a further 2% since the beginning of the year, and reached QR11.6bn in March. Customer deposits at QR12.1bn, which shows an increase of 25% when compared to Q1, 2011, means the bank is well positioned for future growth with a loan to deposit ratio below 100%,” al khaliji said.

Sheikh Hamad said, “The start of the year is encouraging in an increasingly competitive market. Forecast growth in 2012 for the Qatar non-hydrocarbon sector, in particular financial services, is compelling. We believe the QCB (Qatar Central Bank) will continue to play a key role in prudently managing the local financial economy and welcome their latest initiative to track the loan to deposit ratios of Qatari banks.”

Gulf Times