Leading Qatari bank Al khaliji has recorded a net profit of QR359 million ($98.5 million) for the first nine months marking an increase of 22 per cent over the same period last year.

Announcing the results after a board meeting, Al khaliji chairman and managing director Sheikh Hamad Bin Faisal Bin Thani Al Thani said the net operating income reached QR698 million, up 21 per cent over the corresponding period in 2010.

Al khaliji total assets reached QR23.8 billion, up by 17 per cent since the beginning of the year, with overseas operations representing 12 per cent of the Group’s total assets, said Sheikh Hamad.

'The revenues grew in both local and international segments: Qatar’s conventional banking activities contributed to 84 per cent of the net operating income while Al Khaliji France, the wholly owned subsidiary headquartered in Paris, with branches in the UAE, contributed 15 per cent,' he added.

Al Khaliji France said its net profit reached QR 42 million, up 14 per cent compared to September 2010.

Sheikh Hamad stated that he was delighted with the bank’s nine-month results as 'they reflected continuous progress and confirmed the success of our predominantly business oriented strategy aligned to the vision and objectives of Qatar.'

The profit for the three-month period ended September 30, 2011 reached QR110 million. The net interest income surged 36 per cent to reach QR444 million from last year's QR327 million.

Sheikh Hamad said, 'Al khaliji continues to expand its fee and commission based activities. Net fee and commission income for the 9 months period reached QR77 million, up 2 per cent compared to September 2010.'

'As expected, net income from Islamic banking activities has reduced in compliance with Qatar Central Bank’s directive on the cessation of conventional banks’ Islamic activities, to QR9 million,' he added.

General and administrative expenses are virtually flat at QR225 million, compared to QR222 million in September 2010.

Commenting on the results, Robin McCall, Group CEO of al khaliji, said, 'Our liquidity and funding position is one of our key focus areas where we would like to remain strong in volatile market conditions. al khaliji is currently investigating a credit rating and may tap the bond market during 2012.'

“Previous year nine-months results included an impairment release of QR61 million, so after adjusting for the once-offs in 2011 for insurance and merger costs, on a comparative basis the increase over 2010 is a very satisfactory 22 per cent,” he added.-TradeArabia  News Service