Qatar National Bank Reports QR12.4 Billion Net Profit for 2016

Doha, January 15 (QNA) - Qatar National Bank (QNB), the country's biggest bank by assets, reported today earnings of QR12.4 billion for 2016. The board proposed a QR3.5 dividend distribution to distribute QR3.5 as dividend, as well as a 10% bonus share (1 free share for every 10 shares owned.) The proposals are pending the approval of Qatar Central Bank. At its current stock price, the cash dividend yield for QNB would be at 2.1% if the proposal goes through. It is worth noting that the yield also changes with the change in stock prices. The figure is 9.5% higher than the bank's 2015 earnings. Its operating profits were QR22.9 billion, a 44% increase on the previous year. Interest income and commissions were responsible for roughly 97% of the bank's revenue. Both revenue streams increased at a rapid rate in 2016. Interest income increased by 84.5% while fees and commissions at 62.3%. The expenses related to these two items increased as well, but at a much lower rate. The bank released a statement to the press today, saying that assets increased 34% in 2016 to reach QR720 billion. Customer funding rose by 28% to QR 507 billion, this led to the Groups loans to deposit ratio reaching 103%. The group's efficiency ratio, which measures costs to revenue, was 30.4%. The figure, considered high among financial institutions, was a result of QNB's strategy on controlling costs. The Qatari bank also non-performing loans to gross loans at 1.8%, a level considered one of the lowest amongst banks in the MEA region, reflecting the high quality of the Groups loan book and the effective management of credit risk. The Groups conservative policy in regard to provisioning, improved the coverage ratio to reach 114% as of 31 December 2016. Total equity grew by 14.2% compared to a year earlier to QR71 billion. Capital Adequacy Ratio (CAR) calculated as per the QCB and Basel III requirements stood at 16.0% as at 31 December 2016, higher than the regulatory minimum requirements of Qatar Central Bank and the Basel Committee. During 2016, QNB acquired 99.88% stake in Finansbank A.S (now rebranded as QNB Finansbank), which enabled QNB affirm its position as the largest financial institution in MEA region. , QNB maintained its position as the most valuable bank brand in the MEA region. This continues to recognize QNBs position as the largest financial institution across the MEA region and the value inherent in the QNB brand. The bank is present, through its subsidiaries and associate companies, in more than 30 countries across three continents providing comprehensive services. It employs more than 28,000 people serving more than 20 million customers through 1,200 locations and 4,300 ATMs. (QNA)