DOHA: QNB Group posted a net profit of QR7.1bn, up by 14.1 percent for the first nine months of 2013 compared to the same period last year. The Group’s total assets increased by 24.5 per cent from September 2012 to reach QR437bn, the highest ever achieved by the group. This was the result of a strong growth rate of 27.4 percent in loans and advances to reach QR304bn.
These results include the financial results of NSGB in Egypt, in which the group concluded the acquisition of a controlling stake amounting to 97.12 percent in March 2013, QNB Group said here yesterday.
The prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost to income ratio) of 20.4 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 1.6 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 with regard to provisioning continued with the coverage ratio reaching 119 percent in September 2013.
At the same time QNB Group increased customer funding by 23.3 percent to QR331bn. This led to the group’s loan to deposit ratio to reach 92 percent.
In order to diversify its source of funds, in April QNB Group announced the successful completion of a bond issuance under its Euro Medium Term Note (EMTN) programme in the international capital markets. Under the programme a $1.0bn tranche was issued on April 22 this year with a seven-year maturity and an attractive coupon rate of 2.875 percent. The Reg S issue generated strong interest from investors around the world.
Total equity increased by 10.5 percent from September 2012 to reach QR51bn as at September 30, 2013. Earnings per share reached QR10.2, compared to QR8.9 in September last year.
The capital adequacy ratio stood at 14.6 percent as at September 30, 2013, higher than the regulatory requirements of Qatar Central Bank and the Basel Committee. The group is keen to maintain a strong capitalisation in order to support future strategic plans.
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.
QNB Group tops the list in the Bloomberg Markets magazine’s annual ranking of the World’s Strongest Banks. 2012 was the first time that QNB was included in the list of eligible banks (78 banks were eligible globally) as a result of achieving more than $100bn of assets.
The Peninsula
