QNB net profit jumps 7pc in first half

 09 Jul 2014 - 5:22

DOHA: QNB Group, the region’s biggest lender, recorded a net profit of QR5.1bn for the first six months ended June 30, 2014. The Group’s first half profit is up by 7 percent compared to a year ago.
Total assets increased by 7.9 percent from June 2013 to reach QR466bn, the highest ever achieved by the Group, driven by a strong growth rate of 10.1 percent in loans and advances to reach QR326bn. 
QNB shares rose 1.74 percent to QR175 on Qatar bourse yesterday.
The Group’s prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio or cost to income ratio of 21.5 percent, which is considered one of the best ratios among financial institutions in the region.
QNB was able to maintain the ratio of non-performing loans to gross loans at 1.6 percent, a level considered one of the lowest amongst banks in the Middle East and Africa, 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 123 percent in June 2014.
At the same time, QNB Group increased customer funding by 5.8 percent to QR345bn. This led to the Group’s loan to deposit ratio reaching 95 percent.
Total equity increased by 10.4 percent from June 2013 to reach QR54bn as on June 30, 2014. Earnings per share reached QR7.2, compared to QR6.8 in June 2013.
The Group started implementing updated Qatar Central Bank  (QCB) and Basel III requirements for the calculation of the Capital Adequacy Ratio (CAR) from early 2014. The ratio stood at 15.9 percent as on June 30, 2014, higher than the regulatory minimum requirements of the QCB. The Group is keen to maintain a strong capitalisation in order to support future strategic plans.
As a result of the Group’s high credit ratings and outstanding asset quality, it was selected as one of the world’s 50 safest financial institutions by Global Finance.
Based on the Group’s continuous strong performance and the expanding international presence, the Group improved its ranking as the most valuable brand in the MENA region, with a world ranking of 101 from 120 in 2012, a jump to the brand value of $1.81bn from $1.31bn.
QNB Group is present, through its subsidiaries and associate companies, in 26 countries providing a comprehensive range of products and services. The total number of staff is more than 13,900 operating from over 600 locations.
The Peninsula