QNB Group posts H1 net profit of QR6.4bn
July 12 2020 08:26 PM
The QNB head office.
QNB Group's total assets have reached QR972bn, showing a year-on-year increase of 10%, with loans and advances expanding 11% to QR705bn in supporting growth in total assets

QNB Group, the largest financial institution in the Middle East and Africa (MEA) region, has reported net profit of QR6.4bn in the first half (H1) of this year as it witnessed 2% rise in operating income and 10% in total assets.
Considering the global economic conditions, QNB Group opted to increase the loan loss provisions during H1 2020 by QR1.2bn to protect it from any adverse shocks in the loan book.
This affected the group's overall profitability, which was down 13% year-on-year in the first six months of this year.
Otherwise, the country's largest bank's operating income increased by 2% to QR12.8bn, reflecting the success in maintaining sustainable growth across several operational revenue segments, despite fee related concessions offered to customers located in its key markets affected by the Covid-19 pandemic.
Total assets reached QR972bn, showing a year-on-year increase of 10%, with loans and advances expanding 11% to QR705bn in supporting growth in total assets.
The bank also witnessed a 10% growth in customer deposits to QR712bn.
In response to the current economic conditions, QNB Group renewed its operational rationalisation, which has started yielding cost-savings.
This helped the group materially improve efficiency (cost-to-income) ratio to 24.5% (from 25.6% in June 2019), which is considered one of the best ratios among large financial institutions in the MEA region.
Indicating better asset quality, the lender's NPL (non-performing loan) ratio stood at 2% at the end of June 30, 2020, one of the lowest amongst financial institutions in the MEA region and reflecting the high quality of the group’s loan book and the effective management of credit risk.
QNB Group achieved a coverage ratio of 100%, which reflects the conservative approach adopted by it towards NPLs.
Total equity reached QR92bn, up 3%, on a yearly basis. Earnings-per-share stood at QR0.64 at the end of H1, 2020.
QNB Group reported robust levels of capital, liquidity and funding measured in terms of capital adequacy ratio at 18.3%, liquidity coverage ratio at 159% and net stable funding ratio at 104%.
"All of the required ratios were higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee," a QNB spokesman said.
QNB Group serves more than 20mn customers supported by 29,000 staff resources operating from 1,000 locations and more than 4,200 ATMs.

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