QNB net profit surges 12% to QR6.2bn
Date
7/15/2016 4:30:54 AM
(MENAFN- The Peninsula) The QNB headquarters in Doha.
By Satish Kanady
DOHA: QNB Group, the region";s largest lender, reported a 12 percent year-on-year increase in its net profit for the first half of 2016 (H1, 16). The QNB";s net profit for the six months ended June 30, reached QR6.2bn or $1.7bn.
Driven by loans and advances, the bank";s total assets increased by 36 percent from June 2015 to reach QR692bn ($190bn), the highest ever achieved by the Group. The loans and advances grew by 39 percent to reach QR497bn ($136bn). At the same time QNB Group increased customer funding by 29 percent to QR488bn ($134bn). This led to the Group";s loans to deposit ratio reaching 101.7 percent.
On 15 June 2016, QNB Group completed the acquisition of 99.81 percent stake in Finansbank A.S. — Turkey. Earlier, the GCC earnings preview reports had predicted that QNB is expected to benefit from Finsbank consolidation during the H1, 16.
QNB Group";s prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost to income ratio) of 30 percent, which is considered one of the best ratios among large financial institutions in the region.
The Group was able to maintain the ratio of non-performing loans to gross loans at 1.8 percent, a level considered one of the lowest amongst large banks in the MEA region, 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 127 percent in 30 June 2016.
Total Equity increased by 27 percent from June 2015 to reach QR73bn ($20bn) as at 30 June 2016. Earnings per Share reached QR7.4 ($2.0), compared to QR6.7 in June 2015.
QNB Group successfully raised QR10bn in Additional Tier 1 Perpetual Capital Notes, to strengthen the Group";s Capital Adequacy Ratios and to support future growth across the Group. Capital Adequacy Ratio (CAR) calculated as per the Qatar Central Bank (QCB) and Basel III requirements stood at 14.2 percnet as at 30 June 2016, higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee.
After completing the acquisition of Finansbank during June 2016, QNB Group solidified its position as one of the strongest rated financial institutions in the MEA region. This is a result 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 MEA region. This continues to recognise QNB";s position as the leading financial institution across the MEA region and the value inherent in the QNB brand.
QNB Group is present, through its subsidiaries and associate companies, in more than 30 countries across three continents providing a comprehensive range of products and services.
The Peninsula