Al Khaliji Commercial Bank (al khaliji) has announced net profits of QR 319.8 million for H1, 2017. This was driven by growth of 3.4% in operating income, effective cost management leading to lower operating expenses and prudent provisioning on the credit portfolio.

Chairman and Managing Director, Sheikh Hamad bin Faisal Al Thani, stated: “al khaliji’s good results reflect the strength of our business and fortitude of our team. We continue to deliver on our strategic objectives, and little has changed in this regard, despite the current challenges. The bank is a highly rated institution headquartered in Qatar whose economy is very strong with huge reserves.”

The bank announced net operating income of QR 609.8 mn, an increase of 3.4% compared to last year, net interest income (NII) of QR 496.2 mn, an increase of 9% year-on-year, impairment charges of QR 115 mn, reflective of  continued conservative provisioning and earnings per share of QR 0.89, similar to the first half of 2016.

Strength and resilience

Group CEO, Fahad Al Khalifa, said: “Our performance for the first half of 2017 reflects the strength and resilience of our business in challenging circumstances. In line with our strategy, we have been prudent in growing our business, strengthening further our funding base and reporting a net profit of QR 319.8 mn for the first half of 2017.”

He added: “We continue to deliver on our strategic objective of delivering long-term sustainable revenues. Our NII at QR 496.2 mn for the first half improved by 9% year on year. Improving our NII has been a key goal for us and was achieved by more focused asset and liability management.”

The bank’s strong cost control policy has delivered an efficiency ratio of 28% at end June 2017, compared to 32% for the same period last year.

Al Khalifa said: “al khaliji has a heightened focus on all risks, including credit quality which remains high on our agenda.  The bank is carefully managing its credit impairments and has adopted a pragmatic approach to building suitable provisions to protect against potential future shocks. This is reflected in higher impairment charges of QR 115 mn to June 2017.”