QNB’s total assets have increased by 21% to reach QR458bn, the highest ever achieved by the group.
Robust expansion in core earnings and diversified income sources helped QNB report a 14% year-on-year growth in net profit to QR2.4bn in the first three months of this year.
The bank’s net interest earnings surged 26% to QR3bn, net fee and commission earnings by 41% to QR0.5bn and net gain on foreign exchange by 4% to QR0.2bn. Thus, operating income, which also includes share of results of associates, reported more than 26% growth to QR3.7bn.
Prudent cost control policy and strong revenue generating capability allowed the bank to maintain an efficiency ratio (cost to income ratio) of 21.7%, which is considered one of the best among financial institutions in the region, a QNB spokesman said.
Total assets increased by 21% to reach QR458bn, the highest ever achieved by the group. This was the result of a strong growth of 23% in loans and advances to QR317bn.
Total deposits grew 23% to QR346bn. Thus, the bank’s loans to deposit ratio stood at 92% as on March 31, 2014.
QNB Group was able to maintain the ratio of non-performing loans to gross loans at 1.6%, a level considered one of the lowest amongst banks in the Middle East and Africa, reflecting the high quality of its loan book and the effective management of credit risk.
QNB, whose credit rating is considered as being one of the highest in the region, continued with its “conservative” policy on provisioning as its coverage ratio improved to 126% in March 2014 compared to 119% in the year-ago period and 123% in 2013.
Total equity increased by 12% to QR51bn during January-March 2014 as earnings-per-share reached QR3.5 against QR3.1 in the previous year period.
Having started implementing the updated Qatar Central Bank and Basel III norms on capital adequacy ratio (CAR) from the first quarter of this year, QNB’s CAR stood 16.3% as on March 31, 2014, higher than the regulatory minimum requirements.
“The bank is keen to maintain a strong capitalisation in order to support future strategic plans,” said the spokesman of QNB, which had earlier launched ‘Note 2’, a 100% capital-protected note with returns linked to the performance of a basket of eight international (Europe and the US) company stocks.
Note 2 is an ideal medium-term investment product for investors seeking an enhanced return, with 100% capital protection and broad risk diversification.
With the addition of QNB Al Ahli, the new subsidiary in India and the new office in China, the bank’s presence, through its subsidiaries and associate companies, increased to 26 countries, providing a comprehensive range of products and services.