Al Khalij Commercial Bank (al khaliji) P.Q.S.C, in Qatar, yesterday reported net profit of QR185m for the quarter ended March 31, 2021, showing a growth of 4.6 percent compared to the same quarter in 2020.
Chairman and Managing Director, Sheikh Hamad bin Faisal bin Thani Al Thani, stated: “al khaliji delivered a strong set of results for the first quarter (Q1) of 2021. These results demonstrate the continued focus of our team in navigating through a period of economic uncertainty with the continuing unpredictability of the COVID-19 virus.”
“On January 7, 2021, we announced a merger with Masraf Al Rayan. Regulatory approvals and integration planning for the successful completion of this transaction are currently in progress. Our results for the quarter assure us that we are on course to creating one of the largest Shari’ah-compliant banks in the State of Qatar, at the completion of the transaction,” he added.
Commenting on the quarter’s performance, Fahad Al Khalifa, al khaliji’s Group Chief Executive Officer said: “Q1, 2021 ended for us with an expanded Balance Sheet and strong growth in Operating Income. We tightly controlled Operating expenses, which including one-off items lead to an efficiency ratio of 23.8 percent. We also continued to remain prudent and cognizant of the continuing challenges of uncertainty due to the COVID-19 pandemic and enhanced our provisions. Accounting for all of the above, the bank delivered a net profit of QR185m, which is 4.6 percent higher compared to Q1 last year.”
“Our balance sheet remains strong with a strong capital base, good liquidity and provision coverage and our focus in the coming months is to continue the positive momentum,” he added. Bank’s Net Operating Income reached QR379m during the quarter, up 20 percent compared to Q1 of 2020 and Operating expenses reached QR90m, resulting in a cost/income ratio of 23.8 percent.
Loans and deposits increased by 11 percent and 10 percent year on year while the Capital Adequacy ratio at year-end stood at a healthy 19.5 percent.
