Al Khalij Commercial Bank (al khaliji) yesterday reported a net profit of QR361m for the first six months of this year (H1, 2020) witnessing a 2.6% increase over its financial results for the same period last year. The bank’s net operating income increased by 12 percent to QR664m during the first half of 2020 compared to the same period in 2019.
Operating expenses reached QR174m, resulting in a cost/income ratio of 26 percent. While loans and deposits increased by 10.6 percent and 13 percent year on year respectively, the bank’s capital adequacy ratio stood at a healthy 18.7 percent. Sheikh Hamad bin Faisal bin Thani Al Thani, Chairman and Managing Director at al khaliji, said: “We are pleased to report a steady set of results for the first half of the year.
The year 2020 has by far been a challenging year for companies operating globally as well as in Qatar. I am proud that our team has so far navigated well through what some call the “new normal”. We remain committed to continue serving our customers with minimum disruption, and ensure that this is done in a safe and secure environment for all stakeholders”. He added: “al Khaliji has always focused on exploring avenues for enhancing value for shareholders.
On June 30, 2020 we issued a joint press release with Masraf Al Rayan expressing our intention to explore a potential merger of the two banks. This merger is subject to the approvals of various regulatory bodies, and the shareholders in both banks, after completing a detailed financial and legal due diligence. We shall keep the market informed of any material developments in relation to this transaction as and where applicable”.
Commenting on the group’s performance for the first half of 2020, Fahad Al Khalifa, al khaliji’s Group Chief Executive Officer, said: “I am proud of our positive set of results for the first half of 2020, where the al khaliji team has maintained focus in disruptive socio economic circumstances. We have delivered incremental profitability, on the back of strong growth of 12 percent in operating income, diligent management of operating expenses, resulting in a net profit of QR361m”.
He added: “Credit quality also remains high on our agenda, and we continued to remain prudent in our provisioning, strengthening our coverage. While we gradually head towards normalcy, economic uncertainty remains a challenge. With a strong capital base, good liquidity, provision coverage and efficient control of costs, we are well positioned to face these challenges”.
