Ahlibank’s Net Profit QR 339.1 million for the first half of 2015
10 July 2015
Ahli Bank QSC (ABQK) is pleased to announce a net profit of QR 339.1 million for the first half of 2015, an increase of 12% over the corresponding period last year
(H1 2014 – QR 302.7 million).
The Bank’s Balance Sheet has grown by 16.9% over June 2014 to record QR 33,289 million, with business assets generated from core banking activities increasing by 15% to reach QR 22,308 million, reflecting Qatar’s strong economy.
In funding its business growth, Ahlibank has succeeded in increasing its total funding by 17.1% to QR 26,006 million over June 2014. Due to increase in medium term borrowings, the bank’s stable funding as a % of total liabilities increased to 7.2% in June 2015 from 0.8% in June 2014, resulting in an improved liability structure.
Total Core Operating Income grew by 12.5% to QR 520 million in H1 2015 over the corresponding period in 2014. Net Interest Income and Non-Interest Income increased by 7.7% and 29.2% respectively over H1 2014.
Ahlibank continued to invest in infrastructure and human capital; but, still the bank’s Cost to Income Ratio has improved to 27.8% in H1 2015 from 30.9% in H1 2014, highlighting operational efficiency.
The Bank’s Non-Performing Loans ratio (NPL) stood at 1.14% as of June 2015, compared to 1.30% in June 2014, indicating sound asset quality and risk based culture with a strong NPL coverage ratio of 145%.
The key financial performance measure, Return on Average Equity (ROAE) stood at an impressive 16.4% for H1 2015, notwithstanding the Bank’s strong Capital Adequacy ratio of 16.1%. The Return on Average Assets (ROAA) was at 2.24%, reflecting the bank’s emphasis on earnings over size.
Commenting on the results, Sheikh Faisal Bin AbdulAziz Bin Jassem Al-Thani, Chairman and Managing Director of Ahlibank stated “delivering a consistent performance to our shareholders is our main objective. Our business banking divisions have managed to maintain their momentum for growth with a focussed approach, ensuring a healthy pipeline of business flow. The support from our customers and shareholders continue to be an integral part of our success, with our strong commitment to deliver excellent services across all platforms”.
The Chairman added “we look forward to a continued positive performance for the rest of the year, despite eroding lending margins. We continue to explore revenue opportunities and control the operating costs by employing resources efficiently. Also, we wish to thank the Qatar Central Bank for their esteemed leadership and support”.
Key Business Highlights:
Ahlibank has made substantial investments in its branch network by modernising the look and feel of its branches. The bank has completed the refurbishment of 3 branches during H1 2015 located at City Centre, Al Markhiya and Old Airport respectively, in addition to Umm Lekhba branch in December 2014.
Ahlibank continued to improve its product offerings, through introducing Titanium Credit Cards for individuals and Equipment Financing for businesses in H1 2015. The bank’s Private Banking window continues to offer investment opportunities to elite customers in order to diversify their portfolio of assets.
Our social responsibility program extended towards supporting “Educate A Child” under the support of Her Highness Sheikha Moza bint Nasser. Additionally, the Bank has been a consistent supporter in sponsoring the Qatar Society for Rehabilitation of Special Needs, under the patronage of His Excellency the prime minister Sheikh Abdullah Bin Nasser Bin Khalifa Al Thani.