(MENAFN- The Peninsula) QNB Group, the region's largest lender and one of the world's strongest banks, recorded a net profit of QR2.7bn ($735m) for three months ended March 2015, up by 10.1 percent compared with the corresponding period of last year.
On the back of a strong 8.9 percent growth rate in loans and advances, the bank's total assets increased by 9.4 percent from March 2014 to QR502bn ($137.8bn), the highest ever achieved by the Group. The loans and advances reached QR345bn ($94.9bn).
The Group's prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost to income ratio) of 21.7 percent, which is considered one of the best ratios among financial institutions in the region.
The Group was able to maintain the ratio of non-performing loans to gross loans at 1.5 percent, 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 129 percent in March 2015.
At the same time QNB Group increased customer funding by 6.8 percent to QR369bn n ($101.4bn). This led to the Group's loan to deposit ratio reaching 94 percent.
Total equity increased by six percent from March 2014 to reach QR54bn ($15.0bn) as at March 31, 2015. Earnings per Share reached QR3.8 ($1.1), compared to QR3.5 in March 2014.
Capital Adequacy Ratio (CAR) calculated as per the QCB and Basel III requirements stood at 15.1 percent as at March 31, 2015, higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee. The Group is keen to maintain a strong capitalisation in order to support future strategic plans.
During March 2015, Fitch Rating agency upgraded QNB Group to AA-/F1+ on the back of the strength of State of Qatar's sovereign rating. QNB Group has maintained its credit rating from all other rating agencies and is considered one of the highest in the region. This is a result of QNB Group's strong financial position, high quality of its assets and leading position in the financial sector.
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, QNB improved its ranking within the Brand Finance Global Top 500 Banking Survey 2015 and is now the biggest bank brand by value in The Middle East and Africa.
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