Posted on January 21, 2020

Al Khalij Commercial Bank (al khaliji) P.Q.S.C, released its consolidated financial statements for the year ended 31 December 2019 today with a Net Profit of QAR 646 million.

The Board of Directors of al khaliji approved these consolidated financial statements in their meeting held in Doha on 20 January 2020. The results issued today are subject to Qatar Central Bank’s approval and endorsement by shareholders at the bank’s Annual General Assembly.

His Excellency Sheikh Hamad Bin Faisal Bin Thani Al Thani, Chairman and Managing Director stated: “al khaliji ended 2019 on a firm footing, delivering increased profitability of QAR 646 million. These results are in line with our vision of steady growth, and we have delivered them through the excellent dedication, integrity and hard work of our staff. Qatar emerged stronger during 2019, playing host to a number of local and international initiatives and events, and has reaped the economic benefits of the same. The Government has announced a progressive budget for 2020, with QAR 90 billion announced for major projects including infrastructure. This will continue to create opportunities in the economy. We remain confident of our active participation in the local economy, and monetizing opportunities to deliver better value for all stakeholders of the bank”.

Al Khaliji reports a Net Profit 2 [].jpgCommenting on the year’s performance, Fahad Al Khalifa, al khaliji’s Group Chief Executive Officer said: “2019 was yet again a positive year for al khaliji. The bank delivered QAR 646 million in profits, which is +6% better than our performance last year. We have delivered these results by increasing operating income by improving margins, maintaining an efficient cost base, strengthening our capital and funding positions.  Our full year results reflect our continued focus on growing our business locally in Qatar, selectively pursuing opportunities in the local economy.  Net Operating Income grew by 3% year-on-year driven primarily by an increase of 7% in Net Interest Income.  While we focused on improving Operating Income, we also continued our focus on maintain an efficient cost base. Operating costs remained similar to 2018 levels, at QAR 329 million. Prudent management of our loan book has resulted in impairment charges being lower by 7% compared to last year. We will continue to focus on maintaining asset quality during 2020 as well.

We remain progressive in building our balance sheet, with quarter on quarter growth in both loans and deposits of 3% and 6.8% respectively. At the same time, our balance sheet remains strong and liquid with 27% of Total Assets comprising of cash and high quality investment securities, and capital adequacy ratio standing at a robust at 19.1%. During 2019, both Moody’s and Fitch re-affirmed their ratings of “A3/Stable” and “A/Stable Outlook” noting our good asset quality, strong capitalization liquidity positions.

In line with our vision and mission, we remained active within the community this year as well, ensuring our participation by sponsoring or hosting charitable, educational and social events. Similar to previous years, we were also proud to be recognized by the industry, some of which were:

  • ‘Best Corporate Bank - Qatar’ and ‘Best Financial Inclusion Program – MENA’ by the European Magazine;
  • ‘Excellence in Private Banking in Qatar’ by World Union of Arab Banks;
  • ‘Best Partner Bank’ by Qatar Development Bank (QDB)

The World Bank forecasts economic growth averaging +2.5% for Qatar for the period 2020-2022. The government has announced an investment friendly budget for 2020, and has initiated several reforms to facilitate economic progress. Al khaliji is looking forward to 2020 with that backdrop with a positive outlook and renewed optimism, and will continue to support our clients by working closely with them and further strengthen our franchise in Qatar.”

Key Financial highlights:

Al Khaliji reports a Net Profit 3 [].jpg

Cash Dividend

After reviewing the audited financials today, the Board was satisfied with the 2019 financial performance and has recommended (subject to QCB approval) to the Annual General Assembly the distribution of a cash dividend of 7.5% of the nominal share value, i.e. QAR 0.075 per share.

His Excellency Sheikh Hamad Bin Faisal Bin Thani Al Thani concluded by saying: “We extend our deepest gratitude to the Government of Qatar and the Qatar Central Bank for their on-going support and invaluable role in guiding and assisting Qatari financial institutions and local business in their progress towards success.”