Al Khalij Commercial Bank (Al Khaliji) has posted a net profit of QR427mn in 2016, it was announced yesterday.
The bank’s net operating income for 2016 reached QR1.2bn and was 1% higher than 2015.
This growth was driven mainly by a 22% growth in interest income that stood at QR1.8bn by end-2016 and QR198mn in net fee and commission income for the same period.
Earnings per share (EPS) stood at QR1.07 by the end of 2016.
The revenue was generated from conventional banking activities in Qatar and Al Khaliji France SA, its wholly owned subsidiary headquartered in Paris (France) with its four branches in four different emirates in the UAE.
Total assets increased 7% by end-2016 and reached QR60.6bn, compared to QR56.6bn in 2015.
Loans and Advances grew to QR35.2bn in end-2016, 5% higher than the previous year, while deposits grew 4% to QR32.2bn in 2016 compared to QR31bn by end-2015.
Loans to deposits ratio was at 109% by end-2016. Investment securities stood at QR15.6bn in December, 2016.
After reviewing the audited financials, the bank’s Board of Directors recommended to the Annual General Assembly the distribution of a cash dividend of 7.5% of the nominal share value, which translates into QR0.75 per share.
The bank’s capital adequacy ratio was 15.8% as per Basel III. Non-performing loans ratio is 1.52% at the end of December 2016.
Al Khaliji chairman and managing director Sheikh Hamad bin Faisal bin Thani al-Thani said, “Our year end results fall within our expectations for the year 2016, due to numerous regional financial conditions. We are in a fortunate position given Qatar’s overall financial strength and ability to rise above the various challenges experienced by the global markets this year. Al Khaliji in particular remains focused on its customer-centric approach and strategy to deliver a strong balance sheet and consistently meet the expectations of the shareholders. This year witnessed multiple results that demonstrate our resilience and ability to manoeuvre through unstable market conditions. Going forward, I am confident of Al Khaliji’s ability to remain at the forefront and to continue on its trajectory of stability, success and positive outcomes.”
On the year-end financial performance, Al Khaliji Group chief executive officer Fahad al-Khalifa said, “Al Khaliji remains positive in its outlook for 2017 and looks to continue enhancing and growing its market share locally and grow with our local clients abroad. Despite the current market conditions, we have remained strong and many of our numbers indicate progression and resilience. We remain on course to achieve stronger results moving forward by remaining committed to our strategic objectives for the Group.
“We are committed to delivering value to our stakeholders and are positioned to continue to do so, given our sound strategies and solid understanding of market variables. The volatility experienced in 2016 has only strengthened our determination to remain focused in our approach going forward.”
Sheikh Hamad: Within expectations.
