QNB Group reports 7% y-o-y rise in H1 profit to QR7.1bn
(7/12/2018 8:04:00 AM)
QNB Group has reported a 7% year-on-year increase in net profit to QR7.1bn in the first six months of this year.
Total assets increased by 10% to QR846bn, the highest-ever achieved by the group, a bank spokesman said, adding the key driver of total assets growth was loans and advances, which grew by 9% to QR604bn.
This was mainly funded by customer deposits, which increased by 9% to QR614bn, helping QNB Group maintain loans-to-deposits ratio at 98.4% at the end of June 30, 2018.
Asserting that the group’s drive for operational efficiency is yielding cost-savings in addition to sustainable revenue generating sources, the spokesman said this helped QNB improve the efficiency ratio (cost-to-income ratio) to 27.2%, from 29.3% last year, which is considered one of the best among the large financial institutions in the Middle East and Africa.
The group’s strong recovery efforts helped reduce the net impairment charge on QNB’s loan book during the year, demonstrating strong credit quality of the bank’s asset base.
The stock of non-performing loans ratio was at 1.8%, 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 maintained the coverage ratio at 110% at the end of first half ended June 30, 2018. Total equity stood at QR76bn and earnings-per-share was QR7.4 at the end of six months ended on June 30, 2018.
The bank’s capital adequacy ratio stood at 15.8%, higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee. QNB’s successful funding from the international markets during the first six months of 2018 includes, amongst others, capital market issuances of $560mn with a five- and 10-year maturity in Australia and $720mn bonds with 30-year maturity in Taiwan.
This reflects the group’s success in diversifying funding sources by entering new debt markets, sourcing sustainable long-term funding, extending the maturity profile of funding sources and the trust of international investors in the strong financial position of QNB Group and its strategy, the spokesman said.
In June 2018, Fitch Ratings revised the bank’s outlook to “stable” due to successful management of the impact from the blockade. Also QNB remains the highest-rated bank in Qatar and one of the highest-rated banks in the world with the fourth highest rating from major rating agencies Moody’s, Standard & Poor’s and Fitch.
QNB Group serves a customer base of more than 22mn customers with more than 29,000 staff resources operating from 1,100 locations and 4,400 ATMs.