Doha: Al Khalij Commercial Bank (al khaliji) posted a strong increase in net profit, which reached QR119m, up 105 percent from QR58m on March 31, 2010.
Net interest income reached QR148m, 89 percent higher than in Q1 2010 when it reached QR78m, as interest expenses decreased by 40 percent and interest revenues increased by 21 percent. The net interest margin increased to 3.42 percent as of March 31, 2011, compared to 2.60 percent in the corresponding period in 2010.
The net operating income reached QR231m, up 40 percent compared to the corresponding period in 2010, when it reached QR165m. The dividend income, up 321 percent year-on-year, and the profit from available-for-sale investments, up 71 percent year-on-year, respectively contributed to QR5m and QR49m of the net operating income.
The downward trend in the cost to income ratio continued, and attained 48 percent, from 55 percent in Q1 2010.
Conventional banking activities contributed to 85 percent of the net operating income. Al Khaliji France, a wholly owned subsidiary of al khaliji Group, contributed to 14 percent.
Robin McCall, acting Chief Executive Officer, said: "al khaliji's pursues its growth story. In Q1 2011, we achieved growth across conventional and international segments".
Commenting on the Islamic banking portfolio following Qatar Central Bank's intention to close down the Islamic windows of Conventional banks by the year end, McCall said: "In accordance with this directive, al khaliji ceased to extend Islamic facilities to, or take Islamic deposits from new customers. The Management is considering available options for its existing Islamic operations".
The bank's impairment losses on loans, net of recoveries reached QR11m, 21 percent down compared to their level registered in Q1 2010.
Earnings per share (EPS) increased to QR0.33, twice Q1 2010's EPS. Return on average shareholder equity is 9.76 percent, and return on average assets is 2.45 percent (compared respectively to 5.0 percent and 1.4 percent at 31 March 2011). Total shareholder equity, including paid-up share capital, reserves and retained profits, reached QR5.13bn.
Loans and advances increased by 11 percent since the beginning of the year, and reached QR8.05bn on 31 March. During the same period, financial investments, most of which are available-for-sale, increased by 23 percent and reached QR8.68bn.
Customer deposits reached QR9.28bn in Q1 2011, an increase of 24 percent when compared to 31 March 2010 and 16 percent compared to 31 December 2010.
© The Peninsula 2011
