Sheikh Faisal bin AbdulAziz bin Jassem Al Thani, Chairman and Managing Director
DOHA: Ahli Bank QSC (ABQK) has recorded a net profit of QR665.6m for the year ended 2018 with an increase of 4.04 percent over 2017.
The bank’s balance sheet grew by 1.30 percent over December 2017 to QR40.40bn. Liquid Assets as a percentage to Total Assets improved significantly to 30.6 percent in December 2018 as against 25.8 percent in December 2017 driven by growth in liquid assets. The bank’s stable funding consisting of Medium Term Loans and Debt Notes as a percentage of total liabilities improved to 17.6 percent in December 2018 compared with 16.8 percent a year ago as the bank focused on improving the maturity profile of liabilities.
Ahli bank’s total operating income increased by 5.4 percent to QR1.10bn on account of higher non-interest income driven by higher fee & commission income and investment income. Cost to Income Ratio for 2018 improved to 28.1 percent from 30.6 percent in 2017 due to a 5.4 percent growth in Total Operating Income and a 3.1 percent reduction in Total Operating Expenses, reflecting efficient management of the bank’s operations.
The Return on Average Assets (ROAA) and Return on Average Equity (ROAE) stood solid at 1.73 percent and 12.6 percent respectively, despite an increase in balance sheet size and equity base.
Non-Performing Loans Ratio (NPL) stood at 1.69 percent as of December 2018 with a Provisions Coverage Ratio of 134 percent, reflecting strong asset quality. Loan Loss Provisions include IFRS 9 Expected Credit Losses related to Stage 1 and Stage II loan portfolio.Total Capital Adequacy Ratio as of December 2018 stood at a healthy 16.9 percent, reflecting strong capital position of the bank.
Commenting on the results, Sheikh Faisal Bin AbdulAziz Bin Jassem Al-Thani, Chairman and Managing Director of Ahlibank stated, “We are pleased and proud with the Bank’s solid and steady financial performance for the year ending 2018. There are many parallels between Qatar’s economic performance and Ahlibank’s financial performance, both proved resilient, stable and made consistent progress. Ahlibank continues to report steady and consistent income growth, while maintaining strong and diversified funding and healthy asset quality. Ahlibank is now looking to build on the steady performance through investment in new technologies. Focus on innovation and technology have been important pillars to our strategy. As a testimony to our performance Moody’s has affirmed Ahlibank’s A2/Prime-1 deposit ratings. Fitch Ratings has also affirmed Ahlibank’s Long Term Issuer Default Rating (IDR) at ‘A’. Both rating agencies have revised the outlook to Stable from Negative. These ratings make us proud of what we have achieved.” The Chairman further added, “On behalf of the Board of Directors I would like to thank our customers for their loyalty, the shareholders for their confidence in our mission, the management and staff for all their dedication and hard work, and extend a special gratitude to Qatar Central Bank for their uninterrupted guidance and support.” The Board of Directors of Ahlibank has proposed a cash dividend of 10 percent (QR1 per share) and a bonus share of 10 percent (10 new shares for every 100 shares held) as the dividend distribution for the year 2018. The dividend proposal takes into account maximisation of shareholders’ wealth, the Bank’s internal capital requirements, liquidity and balance sheet growth projections.
