AL KHALIJ COMMERCIAL BANK (AL KHALIJI) P.Q.S.C. 
By - Record Net Profit for the year of QR 551 million up 8% from 2012
- Doubling of Net Fee and Commission Income to QR 143 million
- Total Assets grew by 23% to reach QR 41.3 billion by the end of 2013
- Deposit base expands to QR 19.9 billion representing a year-on-year increase of 15%.
- Earnings per Share of QR 1.53, compared to QR 1.42 in December 2012
- Board of Directors recommends a 10% Cash Dividend of the nominal share value
Doha, Qatar January 23, 2013 : al khaliji (KCBK), in Qatar, announced its financial results for 2013 reporting a robust growth of 8% in Net Profits (QR 551 million). This includes the financial results of Al Khaliji France S.A., QR 68m, an increase of 10% year-on-year.
The consolidated financial statements for the year ended 31 December 2013 were approved by the Board of Directors of al khaliji during its meeting held in Doha on 23 January 2014.
The figures are subject to Qatar Central Bank's approval.
Robin McCall, al khaliji's Group Chief Executive Officer stated: "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."
"As 2013 was the initial year in our three-year road map it was important for us to prioritise and deliver on certain objectives to ensure we are well positioned to continue to build scale in our clearly defined market segments. In 2014 we will continue to focus on areas that represent the best opportunities for al khaliji, to achieve a continued strong and sustainable growth rate. We will communicate our preferred customer message of being more exclusive and tailored, and make our market presence felt", said McCall.
Income Statement highlights
al khaliji declared a Net Profit of QR 551 million, 8% higher than last year. A total of 80% 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% to QR 590m, and Net Fee and Commission Income doubled in size to QR 143m. Conversely the contribution from our Investment book reduced by 54%, QR 214m, 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 QR 942 million in 2013 versus QR 969 million in 2012.
Balance Sheet highlights
The Group experienced strong growth of 59% in Loans and Advances to QAR 20.7 billion and this drove Total Assets to QR 41.3 billion, the highest ever achieved by the Group. The Deposit base expanded to QR 19.9 billion representing an increase of 15% on the prior year.
Provisioning
On 31 December 2013, the non-performing loans were at QR 70.2 million compared to QR 59.0 million in the previous year. The NPL ratio improved from 2012 and was at 0.34% by end of 2013.
Commenting on the profit performance, Balance Sheet growth and profile, Robin McCall, al khaliji Group Chief Executive Officer stated:
"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. In late October the bank issued its extremely successful debut bond of US$500m under its newly established US$$750m Euro Medium Term Note Programme. This was an important milestone in the maturity curve of al khaliji. In tandem with these achievements the bank has maintained a high credit rating and outstanding asset quality, with an NPL ratio of 0.34% at year end."
Cash Dividend
Based on the strong financial results the Board of Directors is recommending to the General Assembly the distribution of a 10% cash dividend of the nominal share value i.e. QR 1 per share
Robin McCall, al khaliji Group Chief Executive Officers said:
"The bank has been consistent in generating strong and sustainable returns for its shareholder both from a dividend and capital perspective. It is our intention to uphold this principle in the future."
Earnings per share and capitalization
Earnings per share were at QR 1.53 by the end of 2013, 8% higher than 2012.
The capital adequacy ratio was at 18.4% and Tier 1 capital ratio at 16.7%.
Expressing his gratitude on the impressive performance of al khaliji for 2013, His Excellency 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."
Balance Sheet indicators (QR million) | 2013 | 2012 | 2013/2012 |
Loans and advances to customers | 20,697 | 13,032 | 59% |
Investment securities | 13,898 | 15,865 | -12% |
Total assets | 41,259 | 33,672 | 23% |
Customers' deposits | 19,919 | 17,346 | 15% |
Shareholders' equity | 5,637 | 5,671 | -1% |
Income statement (QR million) | 2013 | 2012 | 2013/2012 |
Net Interest Income | 590.5 | 511.0 | 16% |
Net fee and commission income | 142.8 | 73.2 | 95% |
Net operating income | 942.4 | 968.9 | -3% |
Net profit for the period | 550.9 | 512.2 | 8% |
2013 | 2012 | 2013/2012 | |
Earnings per share | 1.53 | 1.42 | 8% |
Group ratios | 2013 | 2012 |
Liquidity (%) | ||
Loans to Deposits | 105 | 77 |
Loan Quality | ||
Non Performing loans (QR million) | 70.2 | 59.0 |
NPL ratio (%) | 0.34 | 0.45 |
Capital Management (%) | ||
Tier 1 capital ratio | 16.7 | 19.4 |
Capital adequacy ratio (CAR) | 18.4 | 21.4 |
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