News Column

QNB Group reports H1 net profit up seven per cent at QAR 5.1 billion

July 8, 2014

For the first six months of 2014, net profit was QAR 5.1 billion ($1.4 billion), up by 7.0 per cent compared to last year for the Qatari bank, In a statement the bank said, "The Group's prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost to income ratio) of 21.5 per cent, which is considered one of the best ratios among financial institutions in the region."

Total assets increased by 7.9 per cent from June 2013 to reach QAR 466 billion ($127.9 billion), the highest ever achieved by the Group. This was the result of growth of 10.1 per cent in loans and advances to reach QAR 326 billion ($89.6 billion).

QNB Group was able to maintain the ratio of non-performing loans to gross loans at 1.6 per cent and its conservative policy in regard to provisioning continued with the coverage ratio reaching 123 per cent in June 2014.

At the same time QNB Group increased customer funding by 5.8 per cent to QAR 345 billion ($94.8 billion). This led to the Group's loan to deposit ratio reaching 95 per cent.

Total equity increased by 10.4 per cent from June 2013 to reach QAR 54 billion ($14.7 billion) as at 30 June 2014. Earnings per Share reached QAR 7.2 ($2.0), compared to QAR 6.8 in June 2013.

The Group started implementing updated QCB and Basel III requirements for the calculation of the Capital Adequacy Ratio (CAR) from early 2014. The ratio stood at 15.9 per cent as at 30 June 2014, higher than the regulatory minimum requirements of the Qatar Central Bank. The Group is keen to maintain a strong capitalisation in order to support future strategic plans.

QNB Group improved its ranking as the most valuable brand in the MENA region, with a world ranking of 101 (Brand Value: $1.81 billion) from 120 in 2012 (Brand Value: $1.31 billion).

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Source: CPI Financial

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