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DOHA: QNB Group, one of the largest financial institutions in the Mena region, has recorded a net profit of QR6.2bn ($1.7bn) for the nine months ended 30 September 2012, up by 15.0 percent compared to the same period last year.
The Group’s total assets increased by 25.3 percent since September 30, 2011, to reach QR351bn, the highest ever achieved by the Group. This was the result of a strong growth rate of 41.9 percent in loans and advances to reach QR238.6bn. Meanwhile, customer deposits recorded solid growth of 37.4 percent to QR268.5bn.
The bank was able to maintain the ratio of non-performing loans to total loans at 1.2 percent, a level considered to be the lowest amongst banks in the Middle East and North Africa. Provisions were conservatively managed, as the coverage ratio reached 116 percent.
The efficiency ratio (cost to income ratio) stood at 16.6 percent, compared to 15.3 percent in September 2011, one of the best ratios among financial institutions in the Middle East and North Africa. Total shareholders’ equity increased by 13.1 percent since September 30, 2011, to reach QR46.2bn. QNB Group maintains a strong capital adequacy ratio higher than the regulatory requirements of Qatar Central Bank and Basel Committee.
Based on the Group’s strong capitalisation and high credit ratings, QNB was named one of the World’s 50 safest banks and one of the Safest Banks in the Middle East, according to the latest update published by Global Finance in April 2012.
QNB Group launched its debut bond issue under its Euro Medium Term Note Programme in the international capital markets which amounted to $1.0bn with a 5-year maturity. This highly successful issue received an overwhelming interest from regional and international investors.
The bank has also successfully closed a syndicated facility amounting to $1.8 bn with a maturity of three years that was competitively priced. This facility received a very strong interest from regional and international financial institutions and was several times oversubscribed.
In line with QNB Group’s strategy for international expansion, the Bank has increased its stake in Mansour Bank in Iraq to 51 percent. Also, the bank’s stake in the UAE based Commercial Bank International was raised to 40 percent and the bank has acquired a 49 percent stake in Commerce and Development Bank in Libya, one of the leading private sector banks in the country.
Based on the Group’s continuous strong performance and the expanding international presence, the bank is currently ranked as the most valuable brand in the Mena region, with a world ranking of 114 from 189 in 2011.