al khaliji reports 2015 net profit of QAR 626 million and impressive 24% growth in loan book

• Net profit increased 11.1% in 2015 to reach QAR 625.5 million
• Total assets rose by 10.5% to QAR 56.6 billion
• Loans and advances grew by 24.4% to reach QAR 33.4 billion by the end of 2015
• Deposits reached QAR 30.9 billion, up 12.7% from the previous year
• Board of Directors recommends a 10% Cash Dividend of the nominal share

Al khalij Commercial Bank(al khaliji) Q.S.C, in Qatar, released its consolidated financial statements for the year ended 31 December 2015 today with a Net profit of QAR 625.5 million for 2015, up from QAR 562.9 million in 2014.

The consolidated financial statements for the year ending 31 December 2015 were approved by the Board of Directors of al khaliji during its meeting held in Doha on 20 January 2016.

The figures are subject to Qatar Central Bank’s approval and AGA endorsement.

al khaliji Bank Chairman and Managing Director His Excellency Sheikh Hamad in Faisal Bin Thani Al Thani stated:

“I am very pleased to report our robust financial results for 2015. These results are an indication of a successful implementation of a sound strategy. al khaliji’s progression is a reflection of Qatar’s financial prominence and ability to overcome challenges.

We continue to increase our Qatarization levels and their representation on the Senior Management team. Our commitment to deliver a premium financial service to our customers and achieving planned, consistent growth are our key goals. We have exceeded stakeholder’s expectations through our resilient performance and robust growth. I am confident that this will continue with the dedication and commitment of our team.  Our strategy moving forward is to remain focused on profitability and growth while maintaining quality assets.”   

Commenting on the strong financial performance, Fahad Al Khalifa, al khaliji’s Group Chief Executive Officer said:

“al khaliji has produced another record result for the year 2015 with profit of QAR 625.5 million, an increase of 11% on 2014.  The bank grew profit based on improved margins, market share gains in our chosen segments and strong cost discipline. Our efficiency ratio, at 34%, is now more aligned with our peer group.  We continue to see growth in our core franchise locally and in our overseas subsidiaries in France and the UAE. Loans and Advances reached QAR 33.4bn and Deposits QAR 30.9bn at year end, an increase of 24% and 13% respectively. The bank is well capitalized and will maintain strong levels to support future growth plans; against this background the Board has approved issuing alternative Tier 1 Capital.  

Thanks to our clear strategy, al khalji Group will be able to continue its growth despite the expected challenges this year. This Group strategy focuses on Wholesale and HNW customers in Qatar, UAE and France coupled with a robust risk management, diversification of the Bank’s funding base and sustainable returns for shareholders.

Income Statement highlights

Al khaliji reported a Net Profit of QAR 625.5 million, up 11.1% from the previous year. 

The Net Operating Income for the full year 2015 reached QAR 1.14 billion and was 12.9% higher than 2014. This growth was driven mainly by a 23.3% growth in net interest income that stood at QAR 924.2 million by the end of 2015 and QAR 190.4 million in Net fee and Commission income for the same period.

The revenue was generated from conventional banking activities in Qatar and Al Khaliji France S.A., its wholly owned subsidiary headquartered in Paris (France) with its four branches in four different emirates in the UAE.

Balance Sheet highlights

Total assets increased 10.5% by the end of 2015 and reached QAR 56.6 billion compared to QAR 51.2 billion by the end of 2014. 

Al khaliji France S.A.’s represented 10 percent of the group’s total assets.

Loans and advances by end of 2015 grew to QAR 33.4 billion, 24.4% higher than the previous year while Deposits grew 12.7% and were at QAR 30.9 billion in 2015 compared to QAR 27.4 billion by the end of 2014.

Loans to deposits ratio was at 109% by end 2015.

Investment securities stood at QAR 15.3 billion by the end of  2015.

Cash Dividend

After reviewing the audited financials today, the Board was satisfied with the 2015 financial performance and has recommended to the Annual General Assembly the distribution of a cash dividend of 10 % of the nominal share value, i.e. QAR 1 per share.

Capitalization

The bank’s capital adequacy ratio was 13.8% as per Basel III.

Asset Quality

Non-performing loans ratio is 0.86% at the end of December 2015.

His Excellency Sheikh Hamad Bin Faisal Bin Thani Al Thani concludes:

” We extend our deepest gratitude to the Government of Qatar and the Qatar Central Bank for their ongoing support and efficient role in guiding and helping the Qatari financial institutions and local businesses in their progress toward success”.