Al Khaliji 2012 net profit rises to QR512.2m

Al Khaliji France S.A.'s net profit was QR62m for 2012, up by 13% compared to 2011.

The consolidated financial statements for the year ending 31 December 2012 were approved by the Board of Directors of Al Khaliji during its meeting held in Doha on 4 February 2013.

The figures are subject to Qatar Central Bank's approval.

His Excellency Sheikh Hamad Bin Faisal Bin Thani Al Thani, Chairman and Managing Director, said, "The good results Al Khaliji has achieved in a year characterized by a very constrained banking environment, reveal the clear strategy and vision of our Board of Directors, which is being well executed by a dedicated team. With a strong focus on our preferred banking core areas, and realizing the opportunities that presents itself in a low rate environment we have continued generating good results. We believe that our priority is to continue the growth while maintaining a solid balance sheet for the expected conditions."

Income Statement highlights

Al Khaliji declared a Net Profit of QR512.2m, 5.2% higher than last year.

The revenue was generated mainly from the Qatar based conventional banking activities representing 84%. The remaining 16% was generated from Al Khaliji France S.A., its wholly owned subsidiary headquartered in Paris (France) with its four branches in four different emirates in the UAE.

The Net Operating Income for the full year 2012 was at QR969m, 3.2% higher than 2011.

The Investment income at QR396m was higher than 2011 by 133%. This result demonstrates the fruits of our prudent investment strategy which continued in 2012, concentrating on quality, Qatar issued fixed investments.

Robin McCall, Al Khaliji's Group Chief Executive Officer, stated, "Al Khaliji maintained its growth throughout 2012 due to growth in the core business amid declining yields and profitable investment opportunities while remaining conservative in its approach."

Balance Sheet highlights

Total assets increased 24% by the end of 2012 and reached QR33.7bn comparing to QR27.2bn by the end of 2011.

Al Khaliji France S.A.'s represented 10% of the group's total assets.

Loans and advances by end of 2012 stood at QR13.0bn, 13% higher than the previous year while Deposits grew 43% and were at QR17.3bn in 2012 comparing to QR12.1bn by the end of 2011.

Loans to deposits ratio was at 77% by end 2012.

"In spite of the loan growth in 2012, the loans to deposits ratio was based on sufficient inflows of deposits which reflects the funders' confidence in our bank," added Mr. McCall.

Cash Dividend

After reviewing the audited financials today, the Board was satisfied with the 2012 financial performance and has proposed a cash dividend of 70% of net profit, i.e. QR1 per share.

Robin McCall, Al Khaliji's Group Chief Executive Officer, commented, "The bank has been paying dividends since 2010. We are well positioned to continue generating value to our shareholders in the years to come."

Earnings per share and capitalization

Earnings per share were at QR1.42 for the full year 2012, 5% higher than 2011.

The capital adequacy ratio was at 21.4% and Tier 1 capital ratio at 19.4%.

Provisioning

On 31 December 2012, the non-performing loans were at QR59m, down 5.5% from 2011. The NPL ratio improved from 2011 and was at 0.45% by end of 2012.

His Excellency Sheikh Hamad Bin Faisal Bin Thani Al Thani, Chairman and Managing Director, concluded, "We are very satisfied with the 2012 results especially knowing that the global economy is still vulnerable. We continue to have a positive outlook for the Qatar economy in 2013 and for the ongoing growth of our bank. We are well positioned to support the government projects and the public sector. Our focus remains on our strategies to grow while maintaining a prudent balance sheet, and remain committed always to provide good returns to our valuable shareholders for the years to come. The bank's rating was recently affirmed at A- by Fitch with stable outlook which reflects positively for the future."