(The Group’s Comment) Al Khalij Commercial Bank Results
Net Profits: Bank’s net profits, free of payment of interests on the additional capital, amounted to QAR 591.25 million compared to QAR 553.40 million of 2018, an increase of 6.8% while earnings per share amounted QAR 0.164 vs QAR 0.154 for 2018.
Comprehensive Income: The Bank recorded valuation profits of QAR 116.4 million versus losses of QAR 568 thousand for the preceding year 2018.
Operating Income: Operating Income increased by 3% to reach QAR 1177.7 million compared to QAR 1143.5 million. Net interests increased by QAR 64.6 million recouping the decline in fee revenues and foreign exchange profits.
Operating Expenses and Provisions: This item has declined by QAR 14.1 million to reach QAR 505.4 million against QAR 519.4 million for the preceding year 2018 attributed to the reduction of the provisions avoided for the amortization of loans’ losses by QAR 14 million.
Assets: Loans and advances at the end of the year declined by 2.6%, an amount of QAR 820 million while customer deposits increased by 1.2%. Loans to customers’ deposits ratio was 105.5% while irregular loans to total loans ratio was 1.86%. Return on shareholders’ equity stood at 9.85% and the share book value stood at QAR 1.67 per share.
Dividends distributions and market ratios: The Board of Directors has submitted its recommendation to the shareholders’ AGM to distribute a percentage of 7.5 of the share par value (QAR 0.075 per share) cash dividends for the year 2019 representing 46% of the year’s net profit. Dividend payout per share stood at 5.47% and the share is traded at a multiplier of 8.35 times.