QNB's H1 net profit up 7pc to QR5.1bn

 08 Jul 2014 - 17:52

DOHA: Qatar National Bank (QNB) has reported a net profit QR5.1 billion ($ 1.4 billion) for the first six-month period ended June 30.

This represents a 7 percent increase for the same period in 2013, QNB Group said in a media statement Tuesday.

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 percent.

Total assets increased by 7.9 percent from June 2013 to reach QR 466 billion ($127.9 billion), the highest ever achieved by the Group.

The Group attributed this to the strong growth rate of 10.1 percent in loans and advances to reach QR326 billion ($89.6 billion). The Group maintained the ratio of non-performing loans to gross loans at 1.6 percent.

"This 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 statement said.

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 QR345 billion ($94.8 billion). 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 QR54 billion ($14.7 billion) as at 30 June 2014. Earnings per Share reached QR7.2 ($2.0), compared to QR6.8 in June 2013.

The Group said it 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 at 30 June 2014, higher than the regulatory minimum requirements of the QCB. The Group said it 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 (Brand Value: $1.81 billion) from 120 in 2012 (Brand Value: $1.31 billion).

The QNB Group has presence in 26 countries through its subsidiaries and associate companies. Its total staff is more than 13,900 operating over 600 locations. (QNA)