Growing operating income and effective cost management helped new generation lender Al Khaliji report a 5% year-on-year increase in net profit to QR335mn in the first six months of this year.
“Al Khaliji continues to achieve robust profit due to the added momentum of our Qatar-centric medium term strategy. Our prudent risk management practices coupled with strong capital position have laid a solid foundation for future growth,” said its chairman and managing director Sheikh Hamad bin Faisal bin Thani al-Thani. The bank’s operating income increased to QR617mn; while operating expenses were brought down 3% to QR166mn in the review period.
“Al Khaliji is reporting a growing and consistent set of results for the first half of 2018, as we carefully navigate and capitalise on opportunities in the domestic economy during 2018. These results are reflective of our focus on growing operating income, efficiently managing our cost base and deploying our balance sheet in line with our risk appetite,” Fahad al-Khalifa, Al Khaliji’s group chief executive said. In line with its strategic objective of long term sustainable revenues, the bank has been growing balance sheet selectively and its overall yield on interest bearing assets improved. Growth in non-interest income also helped it report higher operating income year-on-year.
The bank continues to focus on maintaining an efficient cost base, and for the first half of 2018, its cost-to-income ratio was 26.9% — one of the lowest amongst Qatari banks.
Indicating high credit quality, the ban’s provisioning continues to be prudent with overall impairments charges declining 6% year on year in the review period.
The bank’s capital adequacy ratio stood at 16.7%, which is higher than the stipulated levels mandated by the Qatar Central Bank and Basel III norms.
Total assets stood at QR55.63bn comprising loans and advances of QR34.34bn and investment securities of QR11.36bn; while customer deposits were QR33.3bn.
Total equity stood at QR6.32bn and earnings-per-share was QR0.93 at the end of six month ended June 30, 2018.
Al-Khalifa: Consistent growth. Right: Sheikh Hamad: Qatar-centric view.
