Al khaliji, a new generation lender, has reported an 11% jump in its net profit to QR290.5mn in the first six months of this year.

Al Khaliji France’s net profit was QR39.4mn by the end of June 2013.

“Al khaliji recorded a robust profit due to the added momentum of our refined medium term strategy. Linked to this, our high liquidity and capital position, together with our prudent risk management practices, has laid a solid foundation for future growth,” its chairman Sheikh Hamad bin Faisal bin Thani al-Thani said.

Stressing that these results confirm the effectiveness in implementing its strategy for 2013 and beyond, the bank’s group CEO Rob McCall said: “We continue to build momentum to meet our set targets for 2013. This success is attributable to our diverse and prudent growth approach in ensuring that our customers’ expectations and requirements are not only met but exceeded.”

A total of 83% of revenues continue to be generated mainly from the Qatar-based conventional banking activities, while the remaining 17% from the wholly-owned arm headquartered in Paris (France) with its four branches in four different emirates in the UAE.

The net operating income for H1 2013 was QR515mn, 12% higher than that in the previous year period.

Investment income fell 22% to QR121mn. “This result demonstrates once again that we are in line with our new strategy by reducing dependence on investment income as we continue to grow our conventional business,” a bank spokesman said.

Total assets increased by 17% to QR32.6bn with the French subsidiary representing 11% of the group’s total assets.

“We are confident that our assets will witness a growth in the upcoming quarters driven by the growth in loans and advances to customers,” McCall said.

Loans and advances for the first half of 2013 stood at QR14.9bn, 30% higher than the same period of the previous year and 14% higher comparing to end of December 2012.

Deposits grew by 7 % to QR18.6bn in the first six months of 2013. Thus, loans-to-deposits ratio was 81% at the end of June 2013.

Earnings-per-share reached QR0.81 for the first six months of this year, up 11% compared to the same period in 2012.

The capital adequacy ratio was at 20.1% and Tier 1 capital ratio at 18.7%. “Qatar continues to be a very attractive market for local, regional and international investors,” Sheikh Hamad said, adding the bank remains well positioned to capture future growth.

By the end of June 2013, the non-performing loans (NPLs) were QR60.2mn and its NPL ratio improved to 0.40%.