DOHA: An announcement regarding the proposed merger of al khaliji bank and International Bank of Qatar (IBQ) can be expected in two to three months, a senior al khaliji official said yesterday.
"Merger is not easy. It will take time, "Sheikh Hamad bin Faisal bin Thani Al Thani, the Chairman and Managing Director of al khaliji told reporters on the sidelines of the bank's annual general meeting (AGM).
Replying to questions, he said "hopefully in two to three months we should be able to make an announcement regarding the merger."
Earlier speaking to the bank's shareholders, he noted: "It is important to mention that all future plans of al khaliji remain subject to the proposed merger with IBQ.
"I should also like to re-affirm that we believe that this proposal will yield important long term benefits for our shareholders by creating a more competitive, financially stronger and significantly larger organisation. We are also of the considered view that the merger is highly appropriate for the Qatari financial market where the arguments for consolidation remain highly compelling. Last, the merger will be submitted for approval to the shareholders as soon as all required regulatory approvals are obtained."
The bank's shareholders yesterday approved at their AGM the 2010 financial statements.
Addressing the AGM, Sheikh Hamad bin Faisal said al khaliji, comprising Al Khalij Commercial Bank and Al Khaliji (France) registered an impressive increase in net profit, which reached QR427m, up 155 percent from QR167m in 2009.
Net interest income of QR463m was QR184m or 66 percent higher than in 2009. At the same time the net interest margin increased to 3.3 percent as of December 31, 2010, compared to 2.7 percent at end 2009.
Net operating income at QR760m was up 46 percent on last year (QR522m). There was a continued downward trend in the cost to income ratio which decreased from 75 percent to 52 percent.
Conventional banking activities contributed 72 percent of the net operating income. Al Khaliji France, a wholly owned subsidiary of al khaliji Group, and Islamic banking, respectively contributed 16 percent and 12 percent.
Earnings per share (EPS) increased to QR1.19, more than 2.5 times 2009's EPS. Return on average shareholder equity is 8.5 percent, and return on average assets is 2.3 percent (compared respectively to 3.5 percent and 1.1 percent at end 2009).
Total shareholder equity, including paid-up share capital, reserves and retained profits, reached QR5.26 bn, up nine percent from QR4.83bn on December 31, 2009.
"2010 proved to be a milestone year for al khaliji, underscored by an outstanding financial performance in all areas of the business. This performance can be seen as a validation of the Bank's underlying medium term, wholesale led strategy which was agreed and put into effect at the beginning of 2010," Sheikh Hamad bin Faisal added.
© The Peninsula 2011
