(MENAFN- Gulf Times) QNB yesterday reported a 10% jump in net profit to QR5.6bn in the first six months of this year on the back of strong operating income.
The group's corporate banking segment reported profits of QR3.66bn, followed by international banking (QR1.65bn), asset and wealth management (QR0.25bn) and consumer banking (QR0.07bn), according to its financial statement filed with the Qatar Stock Exchange.
Net interest earnings grew 7% to QR6.4bn, net fee and commission income by 13% to QR1.1bn and net gain on foreign exchange by 8% to QR0.41bn, reflecting the success in diversifying the sources of income, the bank said, releasing its first-half results.
The bank's total segment revenue stood at QR8.22bn, of which corporate banking contributed QR4.37bn, followed by international banking (QR2.9bn), asset and wealth management (QR0.49bn) and consumer banking (QR0.40bn).
The group's prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost-to-income) of 21%, which is considered one of the best among financial institutions in the region, marginally improving from 21.5% in the corresponding period of 2014, a bank spokesman said.
The bank also reported a 5% increase in total expenses to QR1.7bn.
Total assets increased by 10% to QR511bn, the highest ever achieved by the group. This was the result of a strong growth of 9% in loans and advances to QR356bn.
The group was able to maintain the ratio of non-performing loans to gross loans at 1.5%, a level considered one of the lowest amongst banks in the Middle East and Africa, reflecting the high quality of its loan book and the effective management of credit risk. In the previous year period, NPLs were to the tune of 1.6%.
"The group's conservative policy in regard to provisioning continued with the coverage ratio reaching 133% in June 2015" against 123% in the first six month of 2014, the spokesman said.
QNB group increased customer deposits by 10% to QR381bn. This led to loan-to-deposit ratio to reach 93% compared to 95% in January-June 2014, he said.
Total shareholders' equity increased 7% to QR58bn as on June 30, 2015. Earnings-per-share reached QR8 compared to QR7.2 in June 2014.
The bank's capital adequacy ratio (CAR) - calculated as per the Qatar Central Bank (QCB) as well as Basel III requirements - stood at 14.4% at the end of June 30, 2015, higher than the regulatory minimum requirements, but was lower than 15.9% in the previous year period.
The bank has followed Basel III CAR with effect from January 1, 2014 in accordance with the QCB regulations. The minimum limit without capital conservation buffer is 10% and minimum limit including capital conservation buffer is 12.5%.
"The group is keen to maintain a strong capitalisation in order to support future strategic plans," the spokesman said.
The QNB group is present, through its subsidiaries and associate companies, in more than 27 countries and three continents providing a comprehensive range of products and services.
The number of staff totals more than 14,900 operating from over 630 locations and with an ATM network of more than 1,340.
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