DOHA: QNB Group, the largest financial institution in the Middle East and Africa (MEA) region, reported a net profit of QR3.4bn ($0.9bn) for the three months ended March 2018, up by 7 percent compared to previous year.
Driven by loans and advances the group’s total assets increased by 12 percent from March 2017 to reach QR834bn ($229bn), the highest ever achieved by the Group. Loans and advances grew by 12 percent to reach QR598bn ($164bn).
QNB Group was successful in attracting funding, which resulted in increased customer funding by 12 percent to reach QR604bn ($166bn). This enabled the Group to maintain its loans to deposits ratio at 99 percent.
The Group’s prudent cost control policy and strong revenue generating capability helped to improve the efficiency ratio (cost to income ratio) to 27.8 percent, which is considered one of the best ratios among financial institutions in the region.
The stock of non-performing loans ratio of 1.8 percent as at 31 March 2018 has been witnessed on a consistent basis, year on year, 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 maintained at 110 percent as at 31 March 2018.
Total Equity increased by 2 percent from March 2017 to reach QR73bn ($20bn) as at 31 March 2018. Earnings per Share reached QR3.6 ($1.0), compared to QR3.3 ($0.9) in March 2017.
Capital Adequacy Ratio (CAR) calculated as per the QCB and Basel III requirements stood at 16.0 percent as at 31 March 2018, higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee.
As part of QNB Group’s continued drive to enhance its status as a global financial institution, the Board of Directors have recommended to the Extraordinary General Assembly Meeting of shareholders (to b held on 17
April 2018), to approve the increase of non-Qatari ownership limit from 25 percent to 49 percent as well as increasing single ownership limit to be increased from 2 percent to 5 percent, in accordance with the applicable laws and regulations.
QNB’s successful funding from the international markets during the first three months of 2018 which mainly included capital market issuances of AUD700m with a 5 and 10-year maturity in Australia, $720m Formosa bonds in Taiwan, private placements totalling $2.5bn with two – three year maturity and a three year senior unsecured syndicated term loan facility of $3.5bn in February 2018.
