Sheikh Hamad bin Faisal bin Thani Al Thani & Robin McCall
DOHA: Al Khaliji (KCBK), in Qatar, reported a net profit of QR551m for the full year 2013, up 8 percent compared to 2012. This includes the results of Al Khaliji France as well.
The consolidated financial statements for the year were approved by the Board of Directors of al khaliji during its meeting held here yesterday. The figures are subject to Qatar Central Bank’s (QCB) approval.
Robin McCall, al khaliji’s Group Chief Executive Officer said: “There is much to be positive about with regards to al khaliji’s performance in 2013. We have made considerable progress in delivering on the strategic priorities we set ourselves and have generated a respectable growth in net profit.
“Delivering an enhanced banking experience to our preferred customers is a key objective we have set ourselves, and I am pleased to say we have made broad strides in this area.”
A total of 80 percent of revenues was generated from the Qatar-based banking activities, and the balance from its international operations.
A key objective of the bank’s medium term strategy 2013-2015 is to “continue to grow the core banking franchise and gradually reduce reliance on investment revenue streams over time”.
This year’s results reflects positive developments in this regard. Net interest income is materially higher than in 2012, up 16 percent to QR590m, and net fee and commission income doubled in size to QR143m. Conversely, the contribution from our investment book reduced by 54 percent, QR214m, during this time period.
This effective rebalancing of the bank’s income streams was achieved while maintaining steady levels of operating income year-on-year, being QR942m in 2013 as against QR969m in 2012.
The group experienced strong growth of 59 percent in loans and advances to QR20.7bn and this drove total assets to QR41.3bn, the highest ever achieved by the Group. The deposit base expanded to QR19.9bn, representing an increase of 15 percent on the prior year.
On December 31, 2013 the non-performing loans were at QR70.2m compared to QR59m in the previous year. The NPL ratio improved from 2012 and was at 0.34 percent by end of 2013.
Commenting on the profit performance, balance sheet growth and profile, Robin said: “Growth has been solid across all core business areas in our identified market segments. We have increased our geographic reach to new touch points in North Africa and witnessed impressive returns from non-funded trade-flow related business.”
Based on the strong financial results, the Board of Directors recommended to the General Assembly the distribution of a 10 percent cash dividend of the nominal share value -- QR1 per share Earnings per share were at QR1.53 by the end of 2013, eight percent higher than 2012. The capital adequacy ratio was at 18.4 percent and Tier 1 capital ratio at 16.7 percent.
Expressing his gratitude on the impressive performance of al khaliji for 2013, Sheikh Hamad bin Faisal bin Thani Al Thani, Chairman and Managing Director, said: “The bank’s strategy and successful business model continues to differentiate us from our competitors and once again have enabled us to deliver strong results.
“We appreciate the confidence of our shareholders and remain committed to continuing to deliver robust growth and consistent returns. Our strong capital base, deliberate customer focus, and specific business model positions us well for the future. I would like to thank our employees for the work that they do in serving our clients, supporting our communities and helping al khaliji achieve business success.”