The region’s largest bank QNB Group has posted a first half net profit of QR6.2bn, up 12% on the same period last year.
Total assets increased by 36% from June 2015 to reach QR692bn, the highest ever achieved by the group.
The growth in assets was driven by loans and advances, which grew by 39% to reach QR497bn.
At the same time, QNB Group increased customer funding by 29% to QR488bn. This led to the group’s loans-to-deposit ratio reaching 101.7%.
QNB Group’s “prudent” cost-control policy and strong revenue-generating capability allowed it to maintain an efficiency ratio (cost to income ratio) of 30%, which is considered one of the best among large financial institutions in the region.
The group was able to maintain the ratio of non-performing loans to gross loans at 1.8%, a level considered one of the lowest amongst large banks in the MEA region, reflecting the high quality of the group’s loan book and the effective management of credit risk.
The group’s conservative policy in regard to provisioning continued with the coverage ratio reaching 127% in June 2016.
Total equity increased by 27% from June 2015 to reach QR73bn on June 30 this year. Earnings per share (EPS) reached QR7.4 compared to QR6.7 in June 2015.
QNB successfully raised QR10bn in additional Tier 1 perpetual capital notes, to strengthen its capital adequacy ratios and to support future growth across the Group.
Capital Adequacy Ratio (CAR) calculated as per the QCB and Basel III requirements stood at 14.2% in June, higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee.
On June 15, QNB Group completed the acquisition of 99.81% stake in Finansbank A.?. – Turkey.
After completing the acquisition of Finansbank in June, QNB Group solidified its position as one of the strongest rated financial institutions in the MEA region. This is a result of QNB Group’s strong financial position, high quality of its assets and its leading position in the financial sector.
Based on the group’s continuous strong performance and its expanding international presence, QNB maintained its position as the most valuable bank brand in the MEA region. This continues to recognise QNB’s position as the leading financial institution across the MEA region and the value inherent in the QNB brand.
QNB Group is present, through its subsidiaries and associate companies, in more than 30 countries across three continents providing a comprehensive range of products and services.
QNB Group staff exceeds 27,300 serving more than 20mn customers through 1,200 locations and 4,300 ATMs.