Ahlibank’s Net Profit QR 342 million for the first half of 2017
19 July 2017
Ahli Bank (QPSC) (ABQK) is pleased to announce a net profit of QR 342.2 million for the first half of 2017, an increase of 2.85% over the corresponding period of last year.
Summary Financial Highlights:
- The Bank’s Balance Sheet grew by 10.1% over June 2016 to QR 37,796 million, driven mainly by growth in Loans and Advances and an increase in investment securities.
- Total Customer Deposits increased by 6.3% as against June 2016 to QR 22,103 million.
- Growth in Stable Funding was driven by the bank’s successful issue of US$ 500 million 5 year bonds, under the second tranche of the EMTN programme via international debt capital markets in Q1 2017. As a result, Stable Funding as a percentage of Total Liabilities improved to 18.5% vis-à-vis 13.4% in June 2016.
- Total Liquid Assets as a % of total assets rose to 26.9% in June 2017 as against 25.1% in June 2016.
- Total Operating Income increased by 7.6% to QR 517.8 million on account of higher Net Interest Income as higher loan balances and asset re-pricing, which more than offset the increased funding costs
- Cost to Income Ratio improved to 28.6% during H1 2017 over 31.2% in H1 2016 as income growth outpaced cost growth, reflecting efficient management of cost and revenue drivers.
- The Return on Average Assets (ROAA) and Return on Average Equity (ROAE) remained solid at 1.81% and 14.0% respectively, despite an increase in balance sheet size and equity base.
- Non-Performing Loans Ratio (NPL) stood at 1.02% with a Provision Coverage of 131.4% indicating sound asset quality and conservative provisioning.
Commenting on the results,
Sheikh Faisal Bin AbdulAziz Bin Jassem Al-Thani, Chairman and Managing Director of Ahlibank stated, “Amid challenging market conditions Ahlibank showed resilience with another steady financial performance underpinned by strong liquidity, diversified sources of funding and an improved maturity profile of liabilities. The net profit growth was driven by core operating income which grew by 7.6%. During the year, we maintained sound asset quality with a NPL ratio of 1.02%, strong credit profile and adequate capital strength with a Capital Adequacy Ratio above 15%. Key Basel III ratios such as Loan Coverage Ratio (LCR) stood above 200% enabling the Bank to deal with any contingency. The Net Stable Funding Ratio (NSFR) was also comfortable and well above the statutory minimum of 90%. As a testimony to our performance, international credit rating agencies Moody’s and Fitch have affirmed our credit rating at A2 and A+ respectively in June 2017. We continued to maintain strong relationship with our international correspondent banks.”
The Chairman added, “In February 2017, the Bank successfully met one of its key strategic objectives of improving stable funding by completing the second tranche of fundraising of US$ 500 million as a part of the EMTN programme. We see this as a continued vote of confidence from international investors in both Qatar and Ahlibank. Over 170 leading institutions from Middle East, Asia and Europe participated in the fundraising, which was 4 times oversubscribed. Also, we would like to take this opportunity to thank the Qatar Central Bank for their valued leadership and support.”