Ahli Bank H1 profit up 12.3% to QR271mn

Driven mainly by higher core banking income Ahli Bank (ABQ) posted a first half net profit of QR271mn, up 12.3% on the same period last year.

The bank’s gross operating income stood at QR403.7mn, registering a growth of 22.2% compared with H1, 2012.

ABQ’s total assets stood QR24.7bn in H1, 2013 compared with QR17.7bn in the same period last year, an increase of 39%.

Loans and advances grew by 32.6% to QR15.8bn in H1 compared with QR11.9bn in the same period last year.

Customer deposits increased by 46.4% to QR17.5bn in June this year compared with QR11.9bn in the same period last year.

Ahli Bank’s net interest income and fees and commission income grew by 27.1% and 8.5%, respectively in June this year.

The cost to income ratio was 29.3% in H1, 2013 compared with 31.4% in the same period last year, despite an increase in costs.

Ahli Bank has achieved a return on average equity (ROAE) and return on average assets (ROAA) were strong, at 16.8% and 2.32%, respectively, despite increased equity following the issue of rights shares in end-2012.

A reduction in non-performing assets ratio, from 3.18% of gross loans in December 2012 to 2.41% in June 2013, was “achieved through the exertions” of the Ahli Bank’s risk management team.

The first half of 2013 saw some major developments at Ahli Bank. Various strategic initiatives were implemented following the acquisition of a 29.4% stake in the bank by Qatar Foundation.

Commenting on the performance, Ahli Bank chairman Sheikh Faisal bin Abdel Aziz al-Thani said, “We are proud of the achievements of the bank in the first half of 2013.

“ABQ continues to strengthen its position in Qatar with a strong financial performance through an increase in core banking income and balance sheet size. Improvement in asset quality and investments in infrastructure will accelerate our progress even further.

“We intend to unleash the full potential of technology to improve our performance. The investments in technology are fully aligned to business needs, ensuring that business can respond quickly and competitively.

“We look forward to the increased participation of ABQ in Qatar’s impressive economic performance under the leadership of HH the Emir, Sheikh Tamim bin Hamad al-Thani”.

Ahli Bank chief executive officer Salah Murad said, “We have concluded several milestones that will ensure the sustained delivery of strong results. Our focus on building infrastructure, including people, process, and technology, and our core banking business will continue to be our primary objectives.

“The core earnings growth of 26% is a testimony to the bank’s commitment to creating sustainable value for stakeholders”.

Murad said: “the change initiatives are progressing well” within ABQ. The business model transformation and process improvement drives will be the basis of future growth.

“We are focusing on business growth, as 2013–14 holds a promising outlook for the operating environment in Qatar in light of the dynamic and fast moves being made by the government to accelerate the implementation of mega projects.

“This is expected to boost economic activity and spur growth, creating new opportunities in the local economy. In conclusion, we are thankful to Qatar Central Bank for its support and guidance during this period,” Murad said.