DOHA — Al Khaliji (KCBK) has reported a net profit of QR109 million for the first the quarter of this year ending March 31. Loans and advances grew by 11 percent during the quarter to reach QR22.9 billion, and net interest income increased by 12 percent. The acceleration in sustainable recurring revenues is in line with the bank's strategy to progressively rely less on investment gains for future growth in favor of increased proceeds from a growing banking franchise. "Al Khaliji is starting the year with a solid financial performance supported by a growing banking franchise. Following the Group's strong performance in 2013 it was expected that investment returns would be more muted this year given the developments in quantitative easing and US treasury rates," said Rob McCall, Group Chief Executive Officer, Al-Khaliji. "Protecting the net margin, by adopting a prudent hedging strategy for our fixed income revenue streams and growing our franchise with quality assets remain among our primary objectives. In conjunction with the introduction of our new IT system we will continue to streamline our processes and procedures, aiming to deliver a leaner organization and lasting long-term operational cost savings. We are pleased that our capital strength supports our plans for continued balance sheet initiatives focused on quality earnings.” McCall said that the financials are firmly in line with expectations. This quarter Al-Khaliji has delivered on two key objectives as it invested in an increased physical presence and a new enhanced IT system to deliver on future growth plans consistent with its medium term plan. The Group CEO is satisfied with the strong momentum in which the bank continues to build its franchise across all business lines and captures market share in its chosen segments. The bank has stepped up financing of large infrastructural projects and its private sector preferred customers to drive an increase in its lending book, up 63 percent year-on-year, while preserving superior asset quality as reflected in a low NPL ratio. Al-Khaliji's investment portfolio now accounts for 37 percent of total assets in contrast to the end of March last year when it made up half of the bank's assets. Al Khaliji France SA's net profit reached QR16.3 million, up 5 percent compared to Q1 2013 and represents 15 percent of the Group net income. Net Profit for the first quarter of this year is QR 109.2 million compared to QR 131.5 million for the same period in 2013. – SG
