Posted on April 21, 2015

Al Khalij Commercial Bank (al khaliji) Q.S.C., the next generation bank in Qatar, announced its financial results for the first quarter of 2015, reporting a Net Profit of QAR 144.4 million. This represents an increase of 32% over its financial results for the same period of last year. Al Khaliji France S.A.’s net profit was QAR 21.1 million by end of March 2015, up 9% from the same period in 2014 and representing 15% of the group’s net profit.

Commenting on the strong financial performance, Fahad Al Khalifa, al khaliji’s Group Chief Executive Officer said: “I am pleased to report that al khaliji has delivered a strong set of 1st Quarter financial results. Each business unit, in Qatar and overseas, delivered year on year revenue growth. Net income grew by 32% due to increased volumes, wider margins and a firm control of costs. We continue to be recognized as industry leaders, and have received numerous awards this year, for product innovation, service excellence and investor relations transparency. We are well positioned to continue our good performance and to take advantage of the great opportunities in Qatar and the region.” 

Income Statement highlights

Net Profit for the first quarter of this year is QAR 144.4 million compared to QAR 109.2 million for the same period in 2014. Net interest income increased by 33%, to QAR 221 million by end of March 2015. Net fee and commission income reached QAR 45.2 million, up 20% compared to QAR 37.8 million by the end of March 2014. Earnings per share was QAR 0.4 in the first quarter of 2015.

Balance Sheet highlights

Total assets reached QAR 53 billion in the first quarter of 2015, up 21% from Q1 2014 and up 3% from the previous quarter ending December 2014. Al khaliji France S.A.’s represented 9% of the group’s total assets. Loans and advances uplift of 31% on the same period last year and 12% higher than the previous quarter to reach QAR 30 billion by end of March 2015. Deposits amounted QAR 28.5 billion, up 32% compared to the first quarter of 2014 and up 4% from the fourth quarter of 2014.

Fahad Al Khalifa, al khaliji 2 [qatarisbooming.com].JPGCapitalization

The bank’s capital adequacy ratio in Q1 2015 was 15.9% as per Basel III.

Provisioning

Non-performing loans stood at QAR 363.0 million at the end of March 2015, lower than QAR 366.3 million at the end of December 2014. The NPL ratio was at 1.2% in Q1 2015, down 11% from the previous quarter. 

His Excellency Sheikh Hamad Bin Faisal Bin Thani Al Thani, Chairman and Managing Director concluded: "The bank has continued to demonstrate healthy performance and strong growth. During the quarter, Fitch Ratings has upgraded al khaliji’s long-term issuer default rating to 'A+'. This demonstrates al khaliji’s strengthened lending franchise, strong capitalization and longer track record of solid performance. Moreover, al khaliji shareholders elected 6 members for the new Board of Directors for a three-year term; I would like to take the opportunity to congratulate them and to thank our previous Board Members. We are confident in our success and we will continue working toward maximizing returns to all stakeholders.”

Balance Sheet indicators (QAR million)

Q1-2015

Q1-2014

Q1-15/Q1-14

Loans and advances to customers

30,003

22,962

30.7%

Investment securities

16,099

16,052

0.3%

Total assets

52,995

43,654

21.4%

Customers' deposits

28,538

21,665

31.7%

Shareholders' equity

5,594

5,446

2.7%

Income statement (QAR million)

Q1-2015

Q1-2014

Q1-15/Q1-14

Net operating income

276.6

213.8

29.4%

Net income

144.4

109.2

32.2%

 

Q1-2015

Q1-2014

Q1-15/Q1-14

Earnings per share

0.4

0.3

32.2%

Group ratios

Q1-2015

Q1-2014

 

Liquidity (%)

     

Loans to Deposits

106

107

 

Loan Quality

 

 

 

Non-Performing loans (QAR million)

363.0

62.4

 

NPL ratio (%)

1.2

0.3

 

Capital Management (%)

 

 

 

Capital adequacy ratio (CAR)

15.9

17.7

 

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