al khaliji

• Q1 results reflect initial success of medium term strategy
• Net Operating Income for Q1 2010 up 36% compared to Q1, 2009

Doha, 19 April 2010: al khaliji released its Q1 2010 financial results today, reflecting a strong increase of 36% in Net Operating Income, to QR 165 million from QR 121 million in Q1 2009. The results were approved by the Board of Directors in its meeting held in the Bank's headquarters in Doha.

Net profits after tax reached QR 58.1 million for the three months period ended March 31, 2010, compared to QR 51.7 million for Q1 2009, a 12 percent increase.

Net profit includes a net impairment charge of 14.5 million (compared to QR 0.3 million on 31 March 2009).

Robin McCall, acting Chief Executive Officer, said: "The increase is due to the successful execution of our wholesale-led strategy with growing contributions from both Paris and UAE operations".

On March 31, 2010, loans and advances to customers amounted to just over QR 9 billion, an increase of 12.5 percent when compared to 31 March 2009 and 5.2 percent when compared to 31 December 2009.

Financial investments, acquired as part of al khaliji's liquidity management strategy, reached QR 5 billion at 31 March 2010, compared to QR 4 billion at 31 December 2009 and QR 1 billion at 31 March 2009.

Customer deposits increased by QR 2.6 billion (+ 55 percent) compared to 31 March 2009.

His Excellency Sheikh Hamad Bin Faisal Bin Thani Al Thani, al khaliji Chairman and Managing Director, commented: "Qatar Government's timely and strong support to banks and financial institutions during the financial crisis helped maintain the stability of the economy, moderated the impact of the crisis, and provided room for bank lending. al khaliji is well prepared to benefit from the enhanced growth prospects and growing public investments. I am particularly pleased that the quarter's results reflect the fruit of the foresight displayed by the State of Qatar and the Qatar Central Bank and the good work performed by the Bank’s staff and Management team ".