Al Khalij 2017 net profit up 29pc to $150m

25/01/2018 05:42 AST

Qatar-based Al Khalij Commercial Bank (al khaliji) has posted a net profit of QR551 million ($150.4 million) for 2017, as against QR427 million in the previous year, marking an increase of 29 per cent.

Net operating income reached QR1,215 million, up 5 per cent compared to 2016. The Board has recommended the distribution of a cash dividend of 7.5 per cent of the nominal share value, i.e. QR0.75 per share.

Sheikh Hamad Bin Faisal Bin Thani Al Thani, chairman and managing director stated: "al khaliji delivered a solid performance for the year with a notable increase in profits to QR551 million. Our multicultural and dynamic team of employees continues to operate in accordance with our values of integrity and service excellence and to act in the best interests of our customers.

"We remain steadfast in our vision to become 'the most highly rated and respected bank in Qatar' and to deliver sustainable performance for all of our stakeholders. The economic and fiscal strength of Qatar more than outweighs the challenges posed by the largely unexpected, political and trade events that prevail in the region. As such, we look forward to the future from a position of relative strength, confident we have strong fundamentals to ensure ongoing prosperity and success."

Fahad Al Khalifa, al khaliji's Group chief executive officer said: "In 2017, al khaliji generated increased net profit of QR551million, improved its margins, delivered greater cost efficiency and strengthened its capital and funding positions. Our full year results reflect our Qatar centric strategy and the continued strength of the local economy. Net Operating Income grew by 5 per cent year-on-year driven primarily by an 8 per cent increase in net interest income. With our focus on margins, we divested non-core overseas assets whilst continuing to grow our domestic franchise in Qatar by supporting our clients across our wholesale and personal banking business lines.

"We retain our focus on all risks including credit risk. With active remedial management, while maintaining a conservative approach to provisioning, we have managed to reduce credit impairments by 16 per cent compared to 2016, while also improving our coverage ratio to 118 per cent. The bank is well positioned for the introduction of IFRS 9 in line with QCB directives with effect from January 1, 2018.

"Our customer deposits at QR33 billion are up 2 per cent in the year leading to an improvement in our Loan to deposit ratio. Our liquidity coverage ratio (LCR) remains well above the minimum levels required by the Qatar Central Bank. Our balance sheet remains strong and liquid with 26 per cent of total assets comprising cash and high quality investment securities. Our Capital Adequacy Ratio remains robust at 16.7 per cent.

"Looking forward, al khaliji enters 2018 with a positive outlook. Qatar's economy is strong, with an excellent credit rating, high levels of foreign reserves and a robust fiscal policy. Our Qatar centric business model is resilient and our confidence is high. al khaliji will continue its drive to attract the best local talent, to boost Qatarization levels, and to be an employer of choice. We look forward to this year with renewed optimism, and will continue to support our clients by working closely with them and further strengthen our franchise in Qatar," he concluded. -

Trade Arabia