(MENAFN- Gulf Times) Banking major QNB Group continued to maintain robust growth in profitability, posting a net profit of QR10.5bn in 2014, up 10.3%
on the previous 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 20.8%, which is considered "one of the best" among financial institutions in the region.
Total assets increased by 9.7% from December 2013 to reach QR486bn, the highest ever achieved by the group. This was the result
of a "strong growth" rate of 8.8% in loans and advances to reach QR338bn.
QNB Group was able to maintain the ratio of non-performing loans to gross loans at 1.6%, a level considered "one of the lowest"
among banks in the Middle East and Africa, reflecting the high quality of its loan book and the effective management of credit
risk. The group's "conservative" policy of provisioning continued with the coverage ratio reaching 124% in December 2014.
At the same time QNB Group increased customer funding by 7.4% to QR360bn, which resulted in its loan to deposit ratio reaching
94%.
Total equity increased by 7.9% from December 2013 to reach QR58bn as on December 31 last year. Earnings per share (EPS) reached
QR14.9 compared to QR13.5 in December 2013.
QNB Group started implementing updated Qatar Central Bank and Basel III requirements for the calculation of the capital adequacy
ratio (CAR) from early 2014. The ratio stood at 16.2% as on December 31, 2014, higher than the regulatory minimum requirements by
the QCB. The group is keen to maintain a strong capitalisation in order to support future strategic plans, it said.
As a result of QNB'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 QNB Group's "continuous strong performance" and the expanding international
presence, the group improved its ranking as the most valuable brand in the Mena (Middle East and North Africa) region, with a
world ranking of 101 (brand value: $1.81bn) from 120 in 2012 (brand value: $1.31bn).
In the second half of 2014, QNB acquired a 19.4% stake (both ordinary and QNB convertible preference shares) in Ecobank
Transnational Incorporated (Ecobank), a leading pan-African bank.
Ecobank is a strategic partner for QNB and the acquisition of this stake is a fundamental step towards the group's strategy of
being a "MEA icon" by 2017.
In the second half of 2014, QNB also acquired an additional stake in QNB Indonesia, (rebranded from QNB Kesawan) to have a total
stake of 82.59%.
QNB Group is present, through its subsidiaries and associate companies, in some 26 countries and three continents providing a
comprehensive range of products and services. The total number of staff is more than 14,500 operating from over 615 locations and
with an ATM network of more than 1,310 machines.
75% cash dividend proposed
QNB's board of directors has recommended to the bank's general assembly the distribution of a cash dividend of 75% of the nominal
share value (QR7.5 a share).
The recommendation follows the "strong" financial results for 2014 and "consistent" with QNB Group's aim of maximising returns to
shareholders, a bank release yesterday said.
The financial results for 2014 along with the profit distribution are subject to Qatar Central Bank approval, it said.
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