QNB Group has posted a net profit of QR3.6bn in the three months up to March, unchanged from the March 2019 level.
The total assets of QNB Group, which is the largest financial institution in the Middle East and Africa (MEA) region, reached QR964bn, up 9% on March 2019.
Strong growth in loans and advances (by 13%) reached QR708bn and contributed to the growth in total assets.
Strong customer deposits generation helped to increase customer deposits by 11% to reach QR706bn, QNB said.
This helped QNB Group to maintain its loans-to-deposits ratio at 100% as at March 31, 2020.
“Thanks to QNB Group’s robust risk management practices, the first quarter results of QNB Group were not materially impacted by the sudden onset of the Covid-19 pandemic. QNB Group has taken all the necessary actions to protect the well-being of its employees, customers and shareholders. In addition, the Group opted to build more loan loss provisions during the first quarter of 2020 as a precautionary measure,” QNB said.
QNB Group improved efficiency (cost to income) ratio from 25.9% to 25.6%, which is considered one of the “best ratios” among large financial institutions in the MEA region.
NPL ratio amounted to 1.9% as at March 31, 2020, one of the lowest amongst financial institutions in the MEA region, reflecting the high quality of the Group’s loan book and the effective management of credit risk.
Also, during this quarter QNB Group increased its loan loss provisioning by QR272mn, as a precautionary measure in light of the recent turmoil due to the Covid-19 pandemic and the associated issues arising from lockdown and slowdown in the key markets where QNB Group operates.
Total equity increased by 4% to reach QR89bn as at March 31, 2020. Earnings per share maintained at QAR0.36 in line with last year.
Group Capital Adequacy Ratio (CAR) as at March 31, 2020 amounted to 18.4% higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee.
QNB Group serves a customer base of approximately 25mn customers supported by 29,000 staff resources operating from 1,100 locations and more than 4,200 ATMs.
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