Al Khaliji has reported a 5.7% year-on-year growth in net profit to QR683mn and suggested 5.6% cash dividend for shareholders for 2020.
“Al Khaliji ended 2020 on a firm footing, delivering increased profitability of QR683mn. We have achieved this result navigating through a challenging year in the back drop of the Covid-19 pandemic,” said Sheikh Hamad bin Faisal bin Thani al-Thani, chairman and managing director.
Highlighting that it has successfully concluded the merger discussions with Masraf Al Rayyan announced earlier in the year; he said this will, once effected, create one of the largest Shariah-compliant banks in Qatar and in the Middle East, and contribute positively towards the local economy and Qatar National Vision 2030.
The lender’s net operating income shot up 21.6% to QR1.43bn in the review period. This was achieved by a combination of selective growth in loans and improving margins by efficiently managing the cost of liabilities. Excluding one-off items, operating costs also remained nearly similar to 2019 levels, at QR330mn.
“We have delivered these results by increasing operating income by growing our balance sheet as well as improving margins, and at the same time remaining prudent in our provisioning to cater for any potential future impacts of the Covid-19 pandemic,” according to Fahad al-Khalifa, Al Khaliji’s group chief executive.
Loans and advances were up 10% to QR33.9bn and deposits rose 5.4% to QR30.7bn in 2020.
Total assets increased by 5% to QR56.5bn and total equity strengthened by 7.4% to QR7.5bn in the review period. Earnings-per-share stood at QR0.17 in 2020 compared to QR0.16 the previous year.
Indicating higher efficiency, the bank’s cost-to-income ratio improved to 25.8% in 2020 compared to 27.9% in 2019.
The bank’s non-performing loans ratio stood at 1.71%, bettering from 1.86% in 2019. The coverage ratio was 107% compared to 131% in 2019.
The lender’s capital adequacy ratio was at 19.4%, which is higher than the levels mandated by the Qatar Central Bank and the Bassel Committee norms.
LEAVE A COMMENT Your email address will not be published. Required fields are marked*
Opec+ spikes oil; gold drops to a fresh nine-month low
Qatar seen primed to become global hub for arbitration
Ooredoo celebrates business partners at virtual event
Turkish exports to Qatar seen to breach $1bn level in 2021
QBIC announces opening of registration for 3rd wave of Lean Manufacturing Programme
Dukhan Bank net operating profits exceed QR1bn in 2020
Biden nears big win as $1.9tn stimulus goes to final vote
Libya unity govt to restore its oil and gas ministry
Saudi Arabia’s ambitious plan to lead $700bn hydrogen market