Al Khalij Commercial Bank’s (Al Khaliji) net profit in the first quarter of 2018 stood at QR169.6mn, representing a 5.3% increase over the same period last year, it was announced yesterday.
Al Khaliji chairman and managing director Sheikh Hamad bin Faisal bin Thani al-Thani said, “Al Khaliji is starting the year 2018 with a solid financial performance. We are in line with our Qatar-centric strategy and these results depict the bank’s sustained positive performance quarter after quarter. This financial strength will allow us to continue fulfilling our strategic objectives for 2018 and beyond.”
Al Khaliji Group CEO Fahad al-Khalifa said the bank reported a strong set of results for the three months ended March 31, 2018, led by growth in operating income. 
He said the key contributor to the increased operating income was net interest income, which Al Khaliji grew by 5.7%, compared to Q1 2017. 
“This was a key goal in 2017 and remains so into 2018. We have also reported healthy growth in non-interest income in line with our strategy of maintaining a diversified revenue base. We have generated top line growth by de-leveraging non-core and low yielding assets, effectively managing our funding base,” he said.  
As the bank grew top line revenues, it has continued to maintain focus on operating costs, which are lower by 3% compared to Q1 2017, resulting in an improved efficiency ratio of 26%, which is one of the best in Qatar, al-Khalifa said. 
“Risk management continues to remain at the heart of our operating philosophy. Our proactive approach in managing our loan portfolio, coupled with a conservative approach to provisioning has led to a reduction in net impairments compared to the same period last year,” he continued.  
Notwithstanding the introduction of IFRS 9 effective January 2018, net impairment charges were lower by 6% compared to the first quarter last year, according to al-Khalifa. 
“Our balance sheet remains strong and liquid with 26% of total assets comprising cash and high-quality investment securities, and our liquidity cover ratio (LCR) is well above the minimum regulatory requirement.  Our capital adequacy ratio remains robust at 16.6%.
“Qatar’s economy is solid, we have commenced our journey in 2018 with renewed optimism and will continue to support our clients by working closely with them and further strengthen our franchise in Qatar. We remain confident that this will translate into improved financial metrics,” he said.