Al Khaliji Q3 net profit rises to QR454mn

26/10/2017 07:47 AST

Driven by "strong growth" of 7% in operating income, "effective cost management" leading to lower operating expenses and "continued prudent provisioning" on the credit and investment portfolios, Al Khaliji (Al Khalij Commercial Bank) posted a net profit of QR454mn in nine months up to September.

Al Khaliji chairman and managing director Sheikh Hamad bin Faisal bin Thani al-Thani said, "Al Khaliji has delivered a solid performance to the end of September which reflects the resilience of our business model and strength of the Qatar economy. The results are underpinned by strong liquidity, diversified sources of funding and sound capitalisation.

"The outcome is due to increasing cohesion and co-operation across all divisions and employees, of the bank. Al Khaliji is well-positioned to deliver sustainable results into the future."

Al Khaliji group chief executive officer Fahad al-Khalifa said, "Our results for the nine months up to September 30 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, at the same time further strengthening our funding base." He said Al Khaliji's net interest income at QR751mn for the period shows 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% at end September 2017, 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."

Al-Khalifa said Al Khaliji retained its "focus on all risks" including credit risk. The bank continues to "prudently take credit impairments resulting in a pragmatic approach" to building provisions. This is reflected in higher impairment charges of QR220mn to September 30. The growth in operating income, coupled with the bank's effective cost management, has resulted in a net profit of QR454mn, 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 QR32.2bn also grew 8% compared to September 30, 2016. 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," al-Khalifa added.

Gulf Times