Al Khaliji Commercial Bank (al khaliji) recorded a 105 per cent increase in first quarter net profit to QR 119 million ($32.7 million), compared to QR 58 million for the same period last year.

Net interest income reached QR 148 million, 89 per cent higher than in Q1 2010 when it reached QR 78 million, as interest expenses decreased by 40 per cent and interest revenues increased by 21 per cent.

The net operating income reached QR 231 million, up 40 per cent compared to the corresponding period in 2010, when it reached QR 165 million.

The downward trend in the cost to income ratio continued, and attained 48 per cent, from 55 per cent in Q1 2010.

Commenting on the Islamic banking portfolio following Qatar Central Bank’s intention to close down the Islamic windows of conventional banks by the year end, Robin McCall, acting chief executive officer said, “In accordance with this directive, al khaliji ceased to extend Islamic facilities to, or take Islamic deposits from new customers. The management is considering available options for its existing Islamic operations.”

al khaliji’s net profit in Q1 2011 is the second highest quarterly result registered since the establishment of the bank during the first quarter of 2007.

Earnings per share (EPS) increased to QR 0.33, twice Q1 2010’s EPS.

Total shareholder equity, including paid-up share capital, reserves and retained profits, reached QR 5.13 billion.

Loans and advances increased by 11 per cent since the beginning of the year, and reached QR 8.05 billion on March 31.

Customer deposits reached QR 9.28 billion in Q1 2011, an increase of 24 per cent when compared to Q1 last year.

“The bank continues to achieve marked growth rates as we pursue the implementation of our distinctive business strategy. Our profits of QR 119 million are more than 2 times Q1 2010 results and undoubtedly illustrate our success in Qatar, the UAE and France,” added Sheikh Hamad Bin Faisal Bin Thani Al Thani, al khaliji’s chairman and managing director.-TradeArabia News Service