QNB H1 Profits Up 7% YoY

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Doha, July 11 (QNA) - QNB Group, the largest financial institution in the Middle East and Africa (MEA) region, reported first half net income of QR7.1 billion ($1.9 billion), up by 7 percent compared to last year.
Total assets increased by 10 percent from June 2017 to reach QR846 billion ($232 billion), the highest ever achieved by the Group. Earnings per share increased to QR7.4 ($2.0), compared to QR7 ($1.9) in June 2017. Total Equity reached QR76 billion ($21 billion), up by 3 percent from June 2017.
The key driver of total assets growth was from loans and advances which grew by 9 percent to reach QR604 billion ($166 billion). This was mainly funded by customer deposits which increased by 9 percent to reach QR 614 billion ($169 billion) from June 2017. This helped to maintain QNB Groups loans to deposits ratio at 98.4 percent as at 30 June 2018.
The Groups drive for operational efficiency is yielding cost-savings in addition to sustainable revenue generating sources. This helped QNB Group to improve the efficiency ratio (cost to income ratio) to 27.2 percent, from 29.3 percent last year which is considered one of the best ratios among large financial institutions in the MEA. Also the Groups strong recovery efforts helped reduce the net impairment charge on QNBs loan book during the year demonstrating strong credit quality of the bank's asset base. Also maintaining the stock of non-performing loans ratio at 1.8 percent reflecting the high quality of the Groups loan book and the effective management of credit risk. The Groups conservative policy in regard to provisioning maintained the coverage ratio at 110 percent as at 30 June 2018. Capital Adequacy Ratio (CAR) as at 30 June 2018 amounted to 15.8 percent, higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee.
QNB's successful funding from the international markets during the first six months of 2018 which includes, amongst others, (1) capital market issuances of USD560 million (AUD700 million) with a 5 and 10-year maturity in Australia and (2) $720 million bonds with 30 year maturity in Taiwan. This reflects the Groups success in diversifying funding sources by entering new debt markets, sourcing sustainable long-term funding, extending the maturity profile of funding sources and the trust of international investors in the strong financial position of QNB Group and its strategy.
In June 2018, Fitch Ratings has revised the Outlook to Stable due to successful management of the impact from the blockade. Also QNB remains the highest-rated bank in Qatar and one of the highest-rated banks in the world with the fourth highest rating from the major rating agencies of Moodys, Standard & Poors and Fitch.
QNB Group serves a customer base of more than 22 million customers with more than 29,000 staff resources operating from 1,100 locations and 4,400 ATMs. (QNA)