QNB Posts QR 6.2 Billion Net Profit in H1 of 2016

Doha, July 12 (QNA) - QNB Group has announced its results for the first half of 2016, posting a net profit of QR 6.2 billion, (1.7 billion), up by 12 percent compared to last year, the bank said in a press release issued Tuesday. Total assets increased by 36 percent from June 2015 to reach QR 692 billion (190 billion), the highest ever achieved by the group. The growth in assets was driven by loans and advances which grew by 39 percent to reach QR 497 billion (136 billion). At the same time, QNB Group increased customer funding by 29 percent to QR 488 billion (134 billion). This led to the group's loans to deposit ratio reaching 101.7 percent. QNB Group's prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost to income ratio) of 30 percent, which is considered one of the best ratios among large financial institutions in the region. The group was able to maintain the ratio of non-performing loans to gross loans at 1.8 percent, a level considered one of the lowest amongst large banks in the Middle East and Africa region, reflecting the high quality of the group's loan book and the effective management of credit risk. The group's conservative policy in regard to provisioning continued with the coverage ratio reaching 127 percent in June 30, 2016. QNB Group successfully raised QR 10 billion in additional tier 1 perpetual capital notes, to strengthen the group's capital adequacy ratios (CAR) and to support future growth across the group. CAR calculated as per the Qatar Central Bank and Basel III requirements stood at 14.2 percent as of June 30, 2016, higher than the regulatory minimum requirements of the QCB and Basel Committee. QNB Group is present, through its subsidiaries and associate companies, in more than 30 countries across three continents providing a comprehensive range of products and services. Its staff exceeds 27,300, serving more than 20 million customers through 1,200 locations and 4,300 ATMs. (QNA)