Al Khaliji maintains growth momentumQR378m net profit for the nine months ended 30 September 2012

Net Operating Income reached QR662m. Revenues grew in both local and international segments: Qatar's conventional banking activities contributed 81% of the net operating income while Al Khaliji France S.A., the wholly owned subsidiary headquartered in Paris, with branches in the UAE, contributed 19%.

Al Khaliji France S.A.'s net profit reached QR49m, up 17% compared to September 2011.

The Board of Directors of Al Khaliji convened today in Doha, Qatar, chaired by His Excellency Sheikh Hamad Bin Faisal Bin Thani Al Thani, Chairman and Managing Director. The Board examined the Group's results for the third quarter and approved the Interim Consolidated Financial Statements for the 9 month period ended 30 September 2012.

His Excellency Sheikh Hamad Bin Faisal Bin Thani Al Thani, Chairman and Managing Director, said: "We are pleased with the Bank's 9 months results, achieved against a backdrop of declining international economic activity and a challenging political environment. We will continue to seek and pursue responsible strategies relevant to the uncertainties of the day. As always we support and remain aligned to the vision and objectives of the State of Qatar.

The profit for the 3-months period ended 30 September 2012 reached QR117m.

Net interest income, at QR399m, is 12% lower than the QR452m achieved in the same period in 2011, largely due to shrinking margins, record low asset yields and the low level of interest rates.

Al Khaliji continues to expand its fee and commission based activities. Net fee and commission income for the 9 months period reached QR84mn, up 8% compared to September 2011.


General and administrative expenses are down to QR210m, compared to QR225m in September 2011. The cost to income ratio continues to improve and reached 40% on 30 September 2012, compared to 41% in September 2011.

Earnings per share (EPS) increased to QR1.05 compared to QR1.00 in Q3 2011.

The capital adequacy ratio is still at a healthy 22.1% on 30 September 2012, well above Qatar Central Bank and Basel III requirements, confirming the Group's ability to sustain its growth objectives.

Al Khaliji's total assets reached QR32bn on 30 September 2012, up by 19% since the beginning of the year, with overseas operations representing 11% of the Group's total assets.

With its focus on supporting Al Khaliji's preferred customers, the bank increased loans and advances by 11% since the beginning of the year and reached QR12.6bn on 30 September 2012. As part of the Bank's preparation for Basel III and its liquidity management strategy, it continues to acquire high grade financial investments.

On the funding side, Al Khaliji continues to attract deposits, enabling the bank to maintain a healthy loan-to-deposit ratio of 84%.

Robin McCall, Group CEO of Al Khaliji, said:"We foresee increased momentum developing with regards to the planned Qatar infrastructures spend. Al Khaliji remains well positioned to participate in this build out and we will continue to support this credit growth with our preferred customers. Our liquidity and funding position is a key focus area where we intend to remain strong against a backdrop of uncertain global market conditions. We intend to make a bond issuance in 2013 to further strengthen our long term funding arrangements"

On 30 September 2012, non-performing loans and advances (NPLs) amounted to QR57m, down from QR62m on 31 December 2011. The NPL ratio is at 0.44%, down from 0.55% in December 2011.

Commenting on the growth and the current economic environment, McCall noted:"Al Khaliji's core business is Qatar centric with a GCC coverage model. This single market has experienced robust growth rates and our sentiment for sustained returns remains positive given the strong underlying fundamentals. Qatar's hydrocarbon wealth and planned economic diversification bolstered by significant infrastructure build-out in the coming years will drive growth in the banking sector. The slow pace of fiscal and economic reforms in the Euro bloc combined with the tepid pace of recovery in the US and the need to address the potential US 'fiscal cliff' that may transpire in 2013 remains a concern. We are mindful of potential contagion risks should there be an escalation of instability within the region".

Finally, the awarding of A- Fitch Credit Rating earlier this year and the recent benchmark study by CPI Financial which ranked Al Khaliji as the 16th top growing bank in the region, confirms that the bank is establishing itself in its chosen markets.