- Special Pages
H E Yousuf Hussein Kamal, the Minister of Finance and Economy and QNB Group Chairman & Ali Shareef Al Emadi, QNB Group CEO
DOHA: QNB Group continued to record robust growth in profitability, with net profit for 2012 exceeding QR8.3bn, up by 11.1 percent compared to 2011. These results, the highest ever achieved by the Group, demonstrated once again its resilience and revenue-generating capacity, as well as outstanding success in expanding the Group’s core business activities.
The Group Board of Directors, during its meeting yesterday, approved the financial results for the year ended December 31, 2012.
Based on the strong financial results, the Board recommended to the General Assembly the distribution of a cash dividend of 60 percent of the nominal share value (QR6 per share). The financial results for 2012 along with the profit distribution are subject to Qatar Central Bank (QCB) approval.
Total assets of the Group increased by 21.5 percent to reach QR367bn, the highest ever achieved by the bank. This was the result of a strong growth rate of 28.9 percent in loans and advances to reach QR250bn. Meanwhile, customer deposits recorded a solid growth of 34.9 percent to QR270bn, resulting in improved liquidity with the loans to deposits ratio reaching 92.6 percent at year-end 2012. During 2012, the bank continued to focus on diversifying it sources of liquidity and extending the maturity profile of its funding.
The bank was able to maintain the ratio of non-performing loans to total loans at 1.3 percent, a level considered one of the lowest amongst banks in the Middle East and Africa.
Total operating income including share of results of associates increased to QR11.5bn, up by 12.8 percent compared to 2011, as QNB Group succeeded in achieving strong growth across the range of revenue sources. Net interest income increased by 17.3 percent to reach QR9.1bn, driven by the impressive 21.5 percent growth in the balance sheet and the Group’s success in maintaining a strong net interest margin (NIM).
QNB Group continued to diversify its income sources, with net fees and commissions; and net gain from foreign exchange reaching QR1.3bn and QR598m respectively.
Total equity increased by 12.6 percent to reach QR48.0bn as at December 31, 2012. The capital adequacy ratio reached 21.0 percent at year-end 2012, far higher than the regulatory requirements of Qatar Central Bank (QCB) and the Basel Committee.
QNB Group was able to record a strong return to shareholders, with the return on average shareholder’s equity reaching 20.5 percent in 2012, while earnings per share increased to QR11.9, compared with QR11.3 in 2011.
QNB Group’s leading role in the banking sector and the high quality of its assets, along with its capabilities to achieve sustained growth in all activities, were demonstrated clearly in its credit rating that was affirmed during 2012 by Capital Intelligence, Fitch, Moody’s and Standard & Poor’s.
During 2012, QNB Group completed a number of transactions to further solidify its presence in the Mena region. The most significant transaction was the agreement with Société Générale to acquire its full stake of 77.17 percent in NSGB, the second largest private bank in Egypt.