Ahlibank yesterday said its stable funding strategy largely helped it deliver steady net earnings in 2015, amid a tough market environment.
“We continued to strengthen our maturity profile in 2015 by increasing our long term funding, which now accounts for 8.1% of our total liabilities (against 6.1% in 2014). This is in line with our overall funding strategy of maintaining stable funding,” Ahlibank chairman and managing director Sheikh Faisal bin Abdul-Aziz bin Jassim al-Thani said.
Stable funding, comprising medium term borrowings, rose 35% to QR2.24bn in 2015.
The bank, which reported a net profit of QR647.7mn, showed non-performing loans ratio at 1.24%, reflecting sound asset quality.
The return on average assets remained steady at 2.1%, indicating bank’s focus on earnings quality over growth and return on average equity was at a steady 15.1%, despite a year-on-year increase in equity by 8.8%.
The bank’s balance sheet grew 2.9% to QR32.3bn, driven by growth in loans and advances, which rose 13% to QR24.05bn.
Total operating income grew 7% to QR995.9mn, driven primarily by non-interest income, which rose 28% to QR234mn.
Its cost-to-income ratio was contained at 29%, despite significant investments in human capital, IT, branding and infrastructure.
On the 20% dividend (15% in cash and 5% in bonus stocks), the bank said the proposal intends to maximise shareholders’ wealth, at the same time takes into account the current market conditions and its internal capital requirements.