Effective margin management, cost control and lower impairments helped Al Khaliji report a 3.5% jump year-on-year in net profit to QR469mn in the third quarter (Q3) of 2018.
“Al Khaliji has delivered consistent growth in profitability, by maintaining focus on delivering our Qatar-centric medium-term strategy. These results reflect our commitment to our strategy, which is being delivered on the foundations of a strong capital base and excellent liquidity,” said Sheikh Hamad bin Faisal bin Thani al-Thani, Al Khaliji chairman and managing director.
Net fee and commission income was QR154mn, an increase of 2% year-on-year, it said, adding operating expenses stood at QR247mn, showing an improvement of 3.4% over the year-ago period.
“These results embody selective growth, continued focus on our domestic market in Qatar and at the same time managing our cost base effectively,” said Fahad al-Khalifa, Al Khaliji’s group chief executive.
The bank continues to focus on maintaining an efficient cost base, and consistent with earlier quarters, its costs are 3.4% lower year-on-year. Its cost-income ratio was at 27.8% in the review period compared to 27.4% in the corresponding period of 2017.
“We remain focused on credit quality across the group, and we continue to remain prudent in our provisioning. That said, we have reduced overall impairment charges by 28% year-on-year,” al-Khalifa added. The bank’s non-performing loans ratio was at 1.94% at the end of September 30, 2018.
Highlighting that Qatar’s economy continues to grow including in the non-hydrocarbon sector, he said the bank is well positioned to benefit from increased business with its clients in both wholesale banking and private banking franchises, as its clients tap into the commercial opportunities that the economy continues to present.