• Net profit of QAR 361 million, an increase of +2.6% year on year
• Net Operating Income grew 12% year on year, ending at QAR 664 million
• Operating expenses of QAR 174 million, resulting in a cost/income ratio of 26%
• Loans and Deposits increased by 10.6% and 13% year on year respectively
• The Capital Adequacy ratio stood at a healthy 18.7%
Doha, July 25, 2020: Al Khalij Commercial Bank (al khaliji) P.Q.S.C., announced its financial results for the half year ended June 30, 2020, reporting a Net Profit of QAR 361 million. This represents an increase of 2.6% over its financial results for the same period of last year.
His Excellency Sheikh Hamad Bin Faisal Bin Thani Al Thani, Chairman and Managing Director stated:
“We are pleased to report a steady set of results for the first half of the year. 2020 has by far been a challenging year for companies operating globally as well as in Qatar. I am proud that our team has so far navigated well through what some call the “new normal”. We remain committed to continue serving our customers with minimum disruption, and ensure that this is done in a safe and secure environment for all stakeholders.
al Khaliji has always focused on exploring avenues for enhancing value for shareholders. On June 30, 2020 we issued a joint press release with Masraf Al Rayan expressing our intention to explore a potential merger of the two banks. This merger is subject to the approvals of various regulatory bodies, and the shareholders in both banks, after completing a detailed financial and legal due diligence. We shall keep the market informed of any material developments in relation to this transaction as and where applicable.”
Commenting on the performance for the first half of 2020, Fahad Al Khalifa, al khaliji’s Group Chief Executive Officer said:
“I am proud of our positive set of results for the first half of 2020, where the al khaliji team has maintained focus in disruptive socio economic circumstances. We have delivered incremental profitability, on the back of strong growth of 12% in Operating Income, diligent management of operating expenses, resulting in a net profit of QAR 361 m.
Credit quality also remains high on our agenda, and we continued to remain prudent in our provisioning, strengthening our coverage. While we gradually head towards normalcy, economic uncertainty remains a challenge. With a strong capital base, good liquidity, provision coverage and efficient control of costs, we are well positioned to face these challenges”.
Key highlights – H1, 2020 results:
Income Statement - QAR million H1 2020 H1, 2019 Change
Revenue 664 592 +12.0%
Expenses 174 161 +8.0%
Net Impairment Loss 122 67 +83.2%
Profit 361 352 +2.6%
Cost Income Ratio 26.2% 27.2% -3.6%
Earnings Per Share (QAR) - YTD 0.10 0.10 +2.6%
Rating Fitch A / Stable
Moody’s A3 / Stable
Balance Sheet - QAR million H1 2020 H1, 2019
Total Assets 54,129 49,456
Net Loans & Advances 32,191 29,103
Deposits 29,008 25,658
Total Equity 6,999 6,716
Non-Performing Loans (%) 1.83% 1.84%
NPL Coverage Ratio (%) 139% 106%
Capital Adequacy Ratio (%) 18.7% 19.1%
