News / Press Releases

Ahlibank’s Net Profit QR 639.7 million for the year ended 2017

The following is a summary of the Bank’s strong financial standing:

• The Bank’s Balance Sheet grew by 4.5% over December 2016 to QR 39,883 million, driven by growth in Loans and Advances and Investment Securities.
• Liquid Assets as a percentage to Total Assets stood at a healthy 25.8% in December 2017.
• Total Funding expanded by 4.3% to reach QR 33,786 million as against QR 32,404 million in December 2016. The funding growth was primarily driven by a 100% growth in Debt Securities (EMTN) to QR 3,624 million and a 16.2% growth in Other Borrowings to QR 2,192 million in December 2017, consisting of funding generated through medium term loans.
• Total Customer Deposits increased 6.6% as against June 2017 to QR 23,569 million, despite challenging market conditions. However, Customer Deposits fell 5.8% vs December 2016 as Ahlibank focused on improving stable funding and maturity profile through EMTN Tranche II issue during Q1 2017 and additional medium term loans in Q2 2017.
• Total Operating Income increased by 8.9% to QR 1,044.4 million on account of higher Net Interest Income as higher loan balances and asset re-pricing more than offset the increased funding cost.
• Cost to Income Ratio for 2017 improved to 30.6%, reflecting efficient management of operating expenses.
• The Return on Average Assets (ROAA) and Return on Average Equity (ROAE) stood solid at 1.70% and 12.6% respectively, despite an increase in balance sheet size and equity base.
• Non-Performing Loans Ratio (NPL) stood at 0.99% as of December 2017 reflecting strong asset quality. Loan loss provisions as of December 2017 was sufficient to cover 143% of Non-Performing Loans.

Commenting on the results, Sheikh Faisal Bin AbdulAziz Bin Jassem Al-Thani, Chairman and Managing Director of Ahlibank stated, “We delivered another year of steady performance in a challenging market environment. The Bank posted 8.9% growth in core operating income and 1.3% growth in net profit. NIM management was efficient as the benefits of asset re-pricing and loan growth more than offset the increased funding cost. Further, we focused on strengthening the maturity profile of the Bank’s liabilities. As a result, Bank’s Stable Funding as a percentage of total funding increased to 16.8% as against 11.6% in December 2016. Growth in Stable Funding was driven mainly by the Bank’s successful completion of US$ 500 million EMTN Tranche II in international debt capital markets in Q1 2017 and an increase in medium term loans in Q2 2017. In addition, during Q4 2017 the Bank activated its US$ 500 million commercial paper program, as part of its strategy to diversify its funding sources. Our strategy continues to prioritise asset quality, stability and return over volume growth.”

The Chairman further added, “On behalf of the Board of Directors I would like to thank our customers for their trust, the shareholders for their confidence in our mission, the management and staff for all their unequivocal dedication and hard work, and extend a special appreciation to Qatar Central Bank for their continuous guidance and support”.

The Board of Directors of Ahlibank has proposed a cash dividend of 10% (QR 1.0 per share) and a bonus dividend of 5% (5 new shares for every 100 shares held) as the dividend distribution for the year 2017. The dividend proposal intends to maximise shareholders’ wealth, as well the Bank’s internal capital requirements, liquidity and balance sheet growth projections.

These results are based on the audited financial statements, which are subject to the final approval of Qatar Central Bank and the shareholders in the General Assembly.