Al Khaliji (KCBK), a leading bank in Qatar, has reported a net profit of QR290.5 million ($79.7 million) for the first half (H1) of 2013, reflecting an increase of 11 per cent over the QR261.9 million of the same period in 2012.

Al Khaliji also registered a growth of 21 per cent over the previous quarter (Q1 2013).

Al Khaliji France’s net profit was QR39.4 million by end of June 2013.

Rob McCall, Group chief executive officer of Al Khaliji said: "These results confirm the effectiveness in implementing our strategy for 2013 and beyond. We continue to build momentum to meet our set targets for 2013. This success is attributable to our diverse and prudent growth approach in ensuring that our customers’ expectations and requirements are not only met but exceeded."

A total of 83 per cent of revenues continue to be generated mainly from the Qatar based conventional banking activities. The remaining 17 per cent 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 H1 2013 was QR515 million, 12 per cent higher than H1 2012.

The investment income at QR121 million is lower than H1 2012 by 22 per cent. This result demonstrates once again that we are in line with our new strategy by reducing dependence on Investment income as we continue to grow our conventional business.

Robin McCall, Al Khaliji Group chief executive officer, added: “Al Khaliji has been consistent in delivering sustained and successful growth. This has been possible by recognizing our most valuable assets, our employees. We will continue to develop, recognize and reward their committed efforts.”

Total assets increased by 17 per cent compared to H1 2012 to reach QR 32.6 Billion. Total assets have declined by 3 per cent this year.

“This slight reduction in the first half of 2013 is due to the decrease in our investment securities’ portfolio as per our strategy. We are confident that our assets will witness a growth in the upcoming quarters driven by the growth in loans and advances to customers,” added McCall.

Al Khaliji France S.A.’s represented 11 per cent of the group’s total assets.

Loans and advances for the first half of 2013 stood at QR14.9 billion, 30 per cent higher than the same period of the previous year and 14 per cent higher comparing to end of December 2012.

Deposits grew by 7 per cent to QR 18.6 billion in the first six months of 2013, while loans to deposits ratio was 81 per cent at the end of June 2013.

Earnings per share reached QR0.81 for the first six months of this year, up 11 per cent compared to the same period in 2012.

The capital adequacy ratio was at 20.1 per cent and Tier 1 capital ratio at 18.7 per cent. By the end of June 2013, the non-performing loans were QR 60.2 million and our NPL ratio improved to 0.40 per cent.

Sheikh Hamad Bin Faisal Bin Thani Al Thani, chairman and managing director of Al Khaliji concluded: “Al Khaliji recorded a robust profit due to the added momentum of our refined medium term strategy. Linked to this our high liquidity and capital position together with our prudent risk management practices, has laid a solid foundation for future growth.” – TradeArabia News Service