Sheikh Hamad and McCall: Well-positioned to deliver on future business growth.
Al khaliji has reported a net profit of QR109mn in the first quarter (Q1) of this year, mainly aided by its robust earnings from core operations.
Net profit was down 17% year-on-year, but its subsidiary al khaliji France, with a branch in Paris and four offices in the UAE, reported a 5% rise in net profit to QR16.3mn, which represents 15% of the group’s net income.
“The financial strength of the organisation and our commitment to deliver on our identified strategic initiatives ensures we are well-positioned to deliver on future business growth,” al khaliji chairman and managing director Sheikh Hamad bin Faisal bin Thani al-Thani said.
Loans and advances surged 63% to QR22.96bn, and net interest income increased by 12%, the bank said.
Income from the banking franchise now accounts for 92% of profits, compared to 81% last year, reflecting a growing book with less reliance on investment income, which made up 19% in Q1 2013.
“The acceleration in sustainable recurring revenues is in line with the bank’s strategy to progressively rely less on investment gains for future growth in favour of increased proceeds from a growing banking franchise,” a bank spokesman said.
“Al khaliji is starting the year with a solid financial performance supported by a growing banking franchise. Following the group’s strong performance in 2013, it was expected that investment returns would be more muted this year given the developments in quantitative easing and US treasury rates,” its CEO Robin McCall said.
The bank has stepped up financing of large infrastructural projects and its private sector preferred customers to drive an increase in its lending book, up 63% year-on-year, while preserving superior asset quality as reflected in a low non-performing loans ratio of 0.27%.
Al khaliji’s investment portfolio now (Q1) accounts for 37% of total assets in contrast to half of the bank’s assets in the year-ago period.
Total assets reached QR43.65bn in Q1 2014, up 27% from the previous year period. Al khaliji France represents 10% of the group’s total assets.
Earnings per share were QR0.30 for the first three months of this year. The bank’s capital adequacy ratio was 17.7% as per Basel III. “We are pleased that our capital strength supports our plans for continued balance sheet initiatives focused on quality earnings,” McCall said.
