al khaliji (KCBK), in Qatar, announced its financial results for the second quarter of 2014, reporting a Net Profit of QR149.6m. This represents an increase of 37% over its financial results for the first quarter. Profit for the first six months, at QR258.8m, reflects a continued growth in the core banking franchise.
Al Khaliji France S.A.’s net profit was at QR31.6m in H1 2014 and represents 12% of the Group net income.
Robin McCall, al khaliji Group Chief Executive Officer stated: “The momentum of the bank’s commercial franchise continues to thrive, with each Qatar business division displaying solid year on year growth in headline earnings. The ability to realize capital gains from our fixed income portfolio, which formed an important revenue component in past years, is muted and will be progressively replaced by an ongoing increase in business market share”
Income Statement highlights
Net Profit for the second quarter of 2014 is QR149.6m compared to QR159.0m for the second quarter of 2013. Net Profit for the first six month of this year is QR258.8m compared to QR290.5m for the same period in 2013.
For the 6 months ended June 2014, net interest income increased by 19%, to QR364.5m compared with the same period in 2013. Net fee and commission income increased in the same period to reach QR82.3m compared to QR81.8 in the first six month of 2013.
Balance Sheet highlights
Total assets reached QR48.4bn in the first half of 2014, up 48% from H1 2013 and up 17% from the period ending December 2013.
Al khaliji France S.A.’s assets represented 9 percent of the group’s total assets.
Loans and advances grew by 59% compared to same period in 2013 to reach QR23.7bn, and is 15% higher than the period ending December 2013.
Customer deposits grew to QR25.3bn, up 36% compared to the first half of 2013 and up 27% from the fourth quarter of 2013.
Earnings per share and capitalization
Earnings per share were QR0.72 for the first six months of this year. The bank’s capital adequacy ratio was 17.9% as per Basel III.
Non-performing loans stood at QR58.7m at the end of June 2014, down 16% from end of December 2013. The NPL ratio, at 0.25%, continues to be one of the lowest in the market.
His Excellency Sheikh Hamad Bin Faisal Bin Thani Al Thani, Chairman and Managing Director concluded: “The robust financial performance, and Balance Sheet growth, is a clear endorsement of our medium term strategic goals to strengthen and synergize our core business units and provide a strong service proposition to our preferred clients. This sends a clear message to the market that the bank has matured as an organization and is wholly capable of delivering long term sustainable shareholder value”.
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