al khaliji
next generation banking
- overview
- ceo's message
- management team
- our vision
- our strategy
- our values
- selected milestones
- history
- annual report 2007
our strategy
The process by which we develop and execute our strategy is:
What do we want to achieve? Our strategic objectives across four dimensions (financial, customers, internal processes and capabilities) are articulated in a group strategy map setting out how we will create and grow sustainable value for our shareholders.
How do we measure progress against our strategic objectives? A group balanced scorecard contains 15 strategic measures that monitor our performance against the strategic objectives.
How do we achieve our strategic objectives? New strategic initiatives are prioritised based on their relative ability to deliver our strategic objectives.
We believe a failure of strategy is often the result of poor execution rather than weak strategy. Accordingly, the strategic objectives in the group strategy map are sub-divided into strategy maps at the business and functional level, which in turn create their own balanced scorecard of measures and prioritisation of initiatives.
Our current strategic priorities are:
- Build strong foundations. Attract, recruit, develop and retain people with the right skills, knowledge and values in the right roles. Build systems that provide the right information, to the right people, at the right time. Embed end-to-end processes that create value by optimizing “good” volume and standardising workflows.
- Acquire profitable market share and portfolio diversification. QR 7.2bn of authorised capital can support QR 72bn (US$20bn) of risk weighted assets at a 10% Capital Adequacy Ratio. Diversification means achieving the right mix of interest income vs. non-interest income, hydrocarbon and real estate exposure vs. other exposure and wholesale vs. retail business.
What you can expect to see in the near term is:
- A weighting towards Wholesale vs. Retail assets – it takes longer to build a scale Retail business.
- Prioritising our business in Qatar – it’s our home market. We will target the UAE next – it’s the second largest banking market in the GCC and we have announced a commercial agreement to acquire the U.A.E. assets of BLC (France) S.A. (subject to regulatory approval).
- A focus on organic growth – inorganic growth, e.g. BLC (France) S.A., will only be pursued on an opportunistic basis.