DOHA, Qatar - Tuesday, July 8th 2014 [ME NewsWire]
QNB Group, one of the World’s Strongest Banks and the leading bank in the Middle East and North Africa, announced its results for the six months ended 30 June 2014.
For the six months of 2014, Net Profit was QR5.1 billion (USD1.4 billion), up by 7.0% compared to last year.
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%, which is considered one of the best ratios among financial institutions in the region.
Total assets increased by 7.9% from June 2013 to reach QR466 billion (USD127.9 billion), the highest ever achieved by the Group. This was the result of a strong growth rate of 10.1% in loans and advances to reach QR326 billion (USD89.6 billion).
The Group was able to maintain the ratio of non-performing loans to gross loans at 1.6%, 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% in June 2014.
At the same time QNB Group increased customer funding by 5.8% to QR345 billion (USD94.8 billion). This led to the Group’s loan to deposit ratio reaching 95%.
Total Equity increased by 10.4% from June 2013 to reach QR54 billion (USD14.7 billion) as at 30 June 2014. Earnings per Share reached QR7.2 (USD2.0), compared to QR6.8 in June 2013.
The Group started implementing updated QCB and Basel III requirements for the calculation of the Capital Adequacy Ratio (CAR) from early 2014. The ratio stood at 15.9% as at 30 June 2014, higher than the regulatory minimum requirements of the Qatar Central Bank. 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 (Brand Value: USD1.81 billion) from 120 in 2012 (Brand Value: USD1.31 billion).
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 and with an ATM network of more than 1,270 machines.
Maha Mubarak Ali, +974 44975704