al khaliji

• Net operating income up 24% compared to H1 2009
• H1 results reflect continuous success of medium term strategy

Doha, 20 July 2010: al khaliji released its H1 2010 financial results today, showing a strong increase in net operating income, which reached QR 320 million, up 24 percent from QR 258 million for the corresponding period in 2009. The results were approved by al khaliji's Board of Directors in Doha today.

Net income reached QR 112 million for the six months period ended June 30, 2010, compared to QR 108 million for H1 2009, a 3.3 percent increase.

Net profit includes a net impairment charge of QR 17 million, compared to QR 30 million at June 2009.

Robin McCall, acting Chief Executive Officer, said: "The continuous increase in our profit is due to the successful execution of our wholesale-led strategy developed at the end of 2009, in addition to the growing contributions from our wholly owned subsidiary al khaliji France covering both Paris and the UAE operations. We remain cautiously optimistic and will continue to manage all divisions in a prudent manner as we continue to build and deepen the foundations of the Bank for sustainable growth".

On June 30, 2010, loans and advances to customers amounted to QR 9.2 billion, an increase of 12.7 percent when compared to 30 June 2009 and 7 percent when compared to 31 December 2009.

Financial investments, acquired as part of al khaliji's liquidity management strategy, reached QR 6.2 billion at 30 June 2010, compared to QR 4 billion at 31 December 2009 and QR 2.8 billion at 30 June 2009.

His Excellency Sheikh Hamad Bin Faisal Bin Thani Al Thani, al khaliji Chairman and Managing Director, commented: "The economic outlook is improving, and we expect double digit growth rates in oil and non-oil sectors in Qatar to be maintained in 2010 and 2011. al khaliji is well positioned to benefit from the economic expansion and rising demand, in line with the Bank's growth plans over the medium-term. Once again, we salute the perfect timing and incisive interaction in the domestic liquidity markets during June 2010 by the Qatar Central Bank and thank them and the State of Qatar for their outstanding management of the economy during this phase".