(MENAFN - Arab News) Al khaliji (kcbk) reported a net profit of qr109 million for the first quarter ended 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. 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" said rob mccall group ceo al khaliji.
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's net income.
net profit for the first quarter of this year is qr109.2 million compared to qr131.5 million for the same period in 2013.
net interest income increased by 12 percent to qr165.9 million over the prior quarter. net fee and commission income of qr37.8 million grew by 11 percent on q4 2013; however it is qr9.4 million lower year-on-year owing to non-recurring revenues. this reduction flows through on a first quarter comparative basis to net operating income which is qr213.8 million.
income from the banking franchise now accounts for 92 percent of profits compared to 81 percent last year reflecting a growing book with less reliance on investment income which made up 19 percent in q1 2013.