- Net Interest Income increased 9% YoY to QAR 496.2 million
- Net Operating Income reached QAR 609.8 million, up 3.4% compared to last year
- Deposit growth of 5.7% to QAR 32.2 billion
Al Khalij Commercial Bank (al khaliji) P.Q.S.C., announced its financial results for the first six months of 2017, reporting a Net Profit of QAR 319.8 million. This was driven by growth of 3.4% in operating income, effective cost management leading to lower operating expenses and prudent provisioning on the credit portfolio.
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His Excellency Sheikh Hamad Bin Faisal Bin Thani Al Thani, Chairman and Managing Director stated:“al khaliji’s good results reflect the strength of our business and fortitude of our team. We continue to deliver on our strategic objectives, and little has changed in this regard, despite the current challenges. The bank is a highly rated institution head quartered in Qatar whose economy is very strong with huge reserves. al khaliji has a strong and bright future.”
Commenting on the first half 2017 performance, Fahad Al Khalifa, al khaliji’s Group Chief Executive Officer said:“Our performance for the first half of 2017 reflects the strength and resilience of our business in challenging circumstances. In line with our strategy, we have been prudent in growing our business, strengthening further our funding base, and reporting a net profit of QAR 319.8 million for the first half of 2017. The local franchise in Qatar continues to drive the growth in operating income.
We continue to deliver on our strategic objective of delivering long-term sustainable revenues. Our NII at QAR 496.2 million for the first half improved by 9% year on year. Improving our NII has been a key goal for us and was achieved by more focused asset and liability management. The bank’s strong cost control policy has delivered an efficiency ratio of 28% at end June 2017, compared to 32% for the same period last year. As a result, our operating profit before impairment charges was higher by 9% compared to H1 2016.
al khaliji has a heightened focus on all risks including credit quality which remains high on our agenda. The bank is carefully managing its credit impairments and has adopted a pragmatic approach to building suitable provisions to protect against potential future shocks. This is reflected in higher impairment charges of QAR 115 million to June 2017, and has resulted in consistent H1 profits YoY.
The strength of our local franchise in Qatar has been recognized with a number of independent awards in the Q2, 2017. Qatar Development Bank (QDB) awarded us, “Best Partner Bank” for our work with them in advising and financing local companies in the SME sector as part of the State of Qatar’s ongoing strategy to further develop the private sector. We were also awarded, “Best Corporate Bank in Qatar” by the Banker, Middle East as well as” Fastest Growing Private Bank in the region” by the International Finance Magazine.
The economy in Qatar remains strong and supporting our domestic economy remains at the heart of our strategy. We will continue to support our clients by working closely with them and providing innovative financial solutions, this will allow us to continue to grow our franchise in Qatar.”