The consolidated financial statements for the year ending 31 December 2016 were approved by the Board of Directors of al khaliji during its meeting held in Doha on 18 January 2017.
The figures are subject to Qatar Central Bank’s approval and AGA endorsement.
al khaliji Bank Chairman and Managing Director His Excellency Sheikh Hamad Bin Faisal Bin Thani Al Thani stated:
“Our year end results fall within our expectations for the year 2016, due to numerous regional financial conditions. We are in a fortunate position given Qatar’s overall financial strength and ability to rise above the various challenges experienced by the global markets this year. al khaliji in particular remains focused on its customer centric approach and strategy to deliver a strong balance sheet and consistently meet the expectations of the shareholders. This year witnessed multiple results that demonstrate our resilience and ability to maneuver through unstable market conditions. Going forward, I am confident of al khaliji’s ability to remain at the forefront and to continue on its trajectory of stability, success and positive outcomes.”
Commenting on the year-end financial performance, Fahad Al Khalifa, al khaliji’s Group Chief Executive Officer said:
“al khaliji remains positive in its outlook for 2017 and looks to continue enhancing & growing its market share locally and grow with our local clients abroad. Despite the current market conditions, we have remained strong and many of our numbers indicate progression and resilience. We remain on course to achieve stronger results moving forward by remaining committed to our strategic objectives for the Group. Our year end net profit of QAR 427 million was affected by our conservative approach and provisions coming from our overseas operations. Despite this, our Total Assets rose by 7% to reach QAR 60.6 billion; and our Loans and Advances grew by 5% to reach QAR 35.2 billion. Additionally, our Deposits reached QAR 32.2 billion, up 4% from the previous year. We are committed to delivering value to our stakeholders and are positioned to continue to do so given our sound strategies and solid understanding of market variables. The volatility experienced in 2016 has only strengthened our determination to remain focused in our approach going forward.”
Income Statement highlights
al khaliji reported a Net Profit of QAR 427 million by the end of 2016.
The Net Operating Income for the full year 2016 reached QAR 1.2 billion and was 1% higher than 2015. This growth was driven mainly by a 22% growth in interest income that stood at QAR 1.8 billion by the end of 2016 and QAR 198 million in Net fee and Commission income for the same period.
Earnings per share (EPS) were at QAR 1.07 by the end of this year.
The revenue was generated from conventional banking activities in Qatar and Al Khaliji France S.A., its wholly owned subsidiary headquartered in Paris (France) with its four branches in four different emirates in the UAE.
Balance Sheet highlights
Total Assets increased 7% by the end of 2016 and reached QAR 60.6 billion compared to QAR 56.6 billion by the end of 2015.
Al khaliji France S.A.’s represented 9 percent of the Group’s Total Assets.
Loans and Advances by end of 2016 grew to QAR 35.2 billion, 5% higher than the previous year while Deposits grew 4% and were at QAR 32.2 billion in 2016 compared to QAR 31 billion by the end of 2015.
Loans to deposits ratio was at 109% by end 2016.
Investment securities stood at QAR 15.6 billion by the end of 2016.
After reviewing the audited financials today, the Board was satisfied with the 2016 financial performance and has recommended to the Annual General Assembly the distribution of a cash dividend of 7.5% of the nominal share value, i.e. QAR 0.75 per share.
The bank’s capital adequacy ratio was 15.8% as per Basel III.
Non-performing loans ratio is 1.52% at the end of December 2016.
His Excellency Sheikh Hamad Bin Faisal Bin Thani Al Thani concludes:
” We extend our deepest gratitude to the Government of Qatar and the Qatar Central Bank for their on-going support and invaluable role in guiding and assisting Qatari financial institutions and local business in their progress towards success.”
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For further information on al khaliji, please visit www.alkhaliji.com
© Press Release 2017