We also successfully concluded the merger discussions with Masraf Al Rayyan announced earlier in the year. This merger will, once effected, create one of the largest Shari’ah-compliant banks in the State of Qatar and in the Middle East, and contribute positively towards the local economy and Qatar National Vision 2030.
Commenting on the year’s performance, Fahad Al Khalifa, al khaliji’s Group Chief Executive Officer said:
“We ended 2020 on a positive note. The bank delivered QAR 683 million in net profit, which is +5.7% better than our performance last year. We have delivered these results by increasing operating income by growing our balance sheet as well as improving margins, and at the same time remaining prudent in our provisioning to cater for any potential future impacts of the COVID-19 pandemic.
We remained focused during a tough and uncertain year, growing Net Operating Income by 22% year-on-year to QAR 1.4 billion. This was achieved by a combination of selective growth in loans and improving margins by efficiently managing the cost of liabilities. Excluding one-off items, Operating costs also remained nearly similar to 2019 levels, at QAR 330 million. With a view to building resilience to cater for the long-term potential impacts of the pandemic, we materially increased our provisioning compared to last year, which totaled QAR 365 million for year.
With the announcement of a successful merger agreement with Masraf Al Rayan, the energies of the team and myself will be dedicated to efficiently closing the transaction in the shortest possible time and in the interim, we will continue to build on the successes of 2020, which will be positive for the combined bank
I wish to thank the entire alkhaliji team, the Qatar Central Bank, the Qatar Financial Markets Authority, the Ministry of Finance, the Ministry of Commerce & Industry and all other stakeholders for their continued support during 2020”
Key Financial highlights:
After reviewing the audited financials today, the Board was satisfied with the 2020 financial performance and has recommended (subject to QCB approval) to the Annual General Assembly the distribution of a cash dividend of 5.6% of the nominal share value, i.e. QAR 0.056 per share.
His Excellency Sheikh Hamad Bin Faisal Bin Thani Al Thani concluded by saying:
“We extend our deepest gratitude to the Government of Qatar, the Qatar Central Bank and the Ministry of Commerce and Industry for their on-going support and invaluable role in guiding and assisting Qatari financial institutions and local business in their progress towards success.”
For further information on al khaliji, please visit our website www.alkhaliji.com
Or contact our Investor Relations team:
Eliane Abou Atmeh
Investor Relations Officer
Shabbir Barkat Ali
Group Chief Financial Officer
© Press Release 2021