(MENAFN- Gulf Times)
Ahlibank has posted a first-half (H1) net profit of QR339.1mn as its business banking divisions maintained growth momentum with a “focused” approach.
The H1 net profit was up 12% on the same period last year Ahlibank said here yesterday.
In H1 2014 Ahlibank posted a net profit of QR302.7mn.
The performance of Ahlibank’s business banking divisions has ensured a “healthy pipeline of business flow” the bank said.
The bank’s balance sheet grew by 16.9% over June 2014 to record QR33.29bn with business assets generated from core banking activities increasing by 15% to reach QR22.3bn reflecting what Ahlibank termed “Qatar’s strong economy.”
In funding its business growth Ahlibank has succeeded in increasing its total funding by 17.1% to QR26bn over June 2014.
Due to increase in medium-term borrowings the bank’s stable funding as a percentage 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 QR520mn in H1 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; still the bank’s cost-to-income ratio has improved to 27.8% in H1 from 30.9% in H1 2014 highlighting operational efficiency.
Non-performing loans ratio (NPL) stood at 1.14% as of June 2015 compared to 1.3% 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 notwithstanding the bank’s strong capital adequacy ratio of 16.1%. The return on average assets (ROAA) was at 2.24% reflecting the emphasis on earnings over size.
On the first-half results Ahlibank chairman and managing director Sheikh Faisal bin AbdulAziz bin Jassem al-Thani said “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 focused 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”.
“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”. Sheikh Faisal added.
Ahlibank has made substantial investments in its branch network by “modernising the look and feel” of its branches. The bank completed the refurbishment of three branches located at City Centre Al Markhiya and Old Airport during the first half of this year in addition to the Umm Lekhba branch in December 2014.
Ahlibank continued to improve its product offerings by 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.
Ahlibank said “Our social responsibility programme extended towards supporting ‘Educate A Child’ under the support of HH Sheikha Moza bint Nasser. The bank has also been a consistent supporter in sponsoring the Qatar Society for Rehabilitation of Special Needs under the patronage of HE the Prime Minister Sheikh Abdullah bin Nasser bin Khalifa al-Thani.”
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