Qatar- QNB posts Q1 profit at QR2.9bn assets grow by 9.7

Date

4/7/2016 1:26:54 PM

(MENAFN- The Peninsula)

DOHA: QNB Group the largest lender in the Middle East and Africa has posted a net profit of QR2.9bn ($787m) for the first three months of 2016 marking a 7.1 percent increase compared to last year.

The Group maintained an efficiency ratio (cost to income ratio) of 22.7 percent which is considered one of the best ratios among financial institutions in the region a statement said.

Total assets increased by 9.7 per cent from March 2015 to reach QR550bn ($151.1bn) the highest ever achieved by the Group. This was driven by a growth rate of 16.4 per cent in loans and advances to reach QR402bn ($110.4bn).

The growth of the Group assets and liabilities has been affected by the sharp devaluation in Egyptian pound in which total assets and customer deposits were negatively impacted by QR7bn ($1.8bn) and QR5bn ($1.4bn) respectively.

The Group was able to maintain the ratio of non-performing loans to gross loans at 1.4 per cent 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 120 percent in March.

QNB Group increased customer funding by 10.1 percent to QR403bn ($110.7bn). This led to the Group’s loan to deposit ratio reaching 99.7 percent. Total equity increased by 11.1 percent from March 2015 to reach QR60bn ($16.6bn) as at 31 March 2016. Earnings per Share reached QR3.4 ($0.9) compared to QR3.2 in March 2015.

Capital Adequacy Ratio (CAR) calculated as per the QCB and Basel III requirements stood at 15.8 per cent as at 31 March 2016 higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee. The Group is keen to maintain a strong capitalization in order to support the future strategic plans. QNB Group has maintained its position as one of the strongest rated financial institutions in the region. This is because of QNB Group’s strong financial position high quality of its assets and its leading position in the financial sector.

Based on the Group’s continuous strong performance and its expanding international presence QNB maintained its position as the most valuable bank brand in the Middle East and Africa. This continues to recognize QNB’s position as the leading financial institution across the Middle east and Africa and the value inherent in the QNB brand.The Peninsula

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