Ahlibank has posted a net profit of QR665.6mn in 2018, up 4% on the previous year. In 2017, Ahlibank had earned a net profit of QR639.7mn.
The bank’s balance sheet grew to QR40.4bn, up 1.3% on December 2017.
Ahlibank’s liquid assets as a percentage to total assets improved significantly to 30.6% in December 2018 as against 25.8% in December 2017, driven by growth in liquid assets.
The bank’s stable funding consisting of medium-term loans and debt notes as a percentage of total liabilities improved to 17.6% in December 2018 compared with 16.8% in the same period in 2017 as the bank focused on improving the maturity profile of liabilities.
Total operating income increased by 5.4% to QR1.1bn on account of higher non-interest income, driven by higher fee and commission income and investment income.
Ahlibank’s cost-to-income ratio last year improved to 28.1% from 30.6% (in 2017) due to a 5.4% growth in total operating income and a 3.1% reduction in total operating expenses, reflecting efficient management of the bank’s operations.
The return on average assets (ROAA) and return on average equity (ROAE) stood solid at 1.73% and 12.6% respectively, despite an increase in balance sheet size and equity base.
Ahlibank’s non-performing loans ratio (NPL) stood at 1.69% (as of December 2018) with a provisions coverage ratio of 134%, reflecting “strong” asset quality.
Loan loss provisions include IFRS 9 expected credit losses related to Stage 1 and Stage II loan portfolio.
Ahlibank’s total capital adequacy ratio as of December 2018 stood at a healthy 16.9%, reflecting its “strong” capital position, the bank noted.
On the results, Ahlibank chairman and managing director Sheikh Faisal bin AbdulAziz bin Jassem al-Thani said, “We are pleased and proud with the bank’s solid and steady financial performance for the year ending 2018. There are many parallels between Qatar’s economic performance and Ahlibank’s financial performance, both proved resilient, stable and made consistent progress.
“Ahlibank continues to report steady and consistent income growth, while maintaining strong and diversified funding and healthy asset quality. Ahlibank is now looking to build on the steady performance through investment in new technologies. Focus on innovation and technology has been important pillars to our strategy.
“As a testimony to our performance Moody’s has affirmed Ahlibank’s A2/Prime-1 deposit ratings. Fitch Ratings has also affirmed Ahlibank’s Long Term Issuer Default Rating (IDR) at 'A'. Both rating agencies have revised the outlook to Stable from Negative. These ratings make us proud of what we have achieved.”
Sheikh Faisal said, “On behalf of the board of directors I would like to thank our customers for their loyalty, the shareholders for their confidence in our mission, the management and staff for all their dedication and hard work, and extend a special gratitude to Qatar Central Bank for their uninterrupted guidance and support.”
The bank’s board of directors has proposed a cash dividend of 10% (QR1 per share) and a bonus share of 10% (10 new shares for every 100 shares held) as the dividend distribution for 2018.
The dividend proposal takes into account maximisation of shareholders’ wealth, the bank’s internal capital requirements, liquidity and balance sheet growth projections.
The results are subject to the final approval of the Qatar Central Bank and the General Assembly, Ahlibank noted.