QNB Group, the largest financial institution in the Middle East and Africa (MEA) region, has reported a 12% jump year-on-year in net profit to QR3.2bn in the first three months of this year.
This was mainly driven by operating income, which jumped 34% to QR5.4bn, demonstrating the bank’s success in maintaining growth across the range of revenue sources, despite a turbulent macroeconomic environment and currency volatility in its core markets.
Net interest income grew 27% to QR4.2bn, net fee and commission income by 60% to QR0.9bn and net gain from foreign exchange by 10% to QR0.2bn, reflecting the success in diversifying income sources.
Total assets increased 35% from March 2016 to QR743bn, driven by a robust 33% expansion in loans and advances to QR536bn.
The banking group was successful in attracting new customer deposits to comply with the cap on loans-to-deposit ratio of 100% set by the Qatar Central Bank (QCB), which is to be effective from the end of this year. 
Customer deposits rose 34% to QR541bn, which led the group’s loan to deposit ratio to reach 99%.
The lender’s prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost-to-income ratio) of 28.9%, considered one of the best ratios among financial institutions in the region. 
QNB’s total expenses showed a 70% increase to QR1.6bn in the first quarter of this year.
QNB Group was able to maintain the ratio of non-performing loans-to-gross loans at 1.8% and coverage ratio at 114% as on March 31, 2017, a level considered one of the best amongst financial institutions in the MEA region, reflecting the high quality of the group’s loan book and the effective management of credit risk.
Total equity rose 17% to QR71bn as on March 31, 2017. Earnings-per-share stood at QR3.5 compared to QR3.1 in March 2016.
The group’s capital adequacy ratio stood at 15.7% at the end of first quarter ended March 31, higher than the regulatory minimum requirements of the QCB as well as Basel Committee. “The group is keen to maintain a strong capitalisation in order to support future strategic plans,” its spokesman said. In March 2017, QNB launched its operations in the Saudi capital Riyadh. This branch is a significant milestone in QNB’s strategy of international expansion.
QNB Group is present, through its subsidiaries and associate companies, in more than 30 countries and three continents providing a comprehensive range of products and services. The total number of staff for the group is more than 28,000 operating from 1,250 locations and 4,300 ATMs serving more than 21mn 
customers.