DOHA: QNB Group, the region’s largest lender, recorded a net profit of QR2.4bn for the three months ended March 2014, up by 13.7 percent compared to last year. These results include the financial results of QNB ALAHLI in Egypt, in which the Group concluded the acquisition with a controlling stake.
The Group’s prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio or cost-to-income ratio of 21.7 percent, which is considered one of the best ratios among financial institutions in the region.
Total assets increased by 20.6 percent from March 2013 to reach QR458bn, the highest ever achieved by the Group. This was the result of a strong growth rate of 22.5 percent in loans and advances to reach QR317bn.
The Group was also 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 in regard to provisioning continued with the coverage ratio reaching 126 percent in March 2014.
At the same time QNB Group increased customer funding by 23.4 percent to QR346bn. This led to the Group’s loan to deposit ratio reaching 92 percent.
Total equity increased by 11.9 percent from March 2013 to reach QR51bn as on March 31, 2014. Earnings per share reached QR3.5, compared to QR3.1 in March 2013.
The Group started implementing updated QCB and Basel III requirements for the calculation of the Capital Adequacy Ratio (CAR) from Q1, 2014. The ratio stood at 16.3 percent as on March 31, 2014, higher than the regulatory minimum requirements of the Qatar Central Bank. It is keen to maintain a strong capitalisation in order to support future 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. Based on the Group’s continuous strong performance and the expanding international presence, the Group improved its ranking as the most valuable brand in the Mena region, with a world ranking of 101 with a brand value of $1.81bn from 120 in 2012 with brand value $1.31bn.
With the addition of QNB ALAHLI, the new subsidiary in India and the new office in China, QNB Group’s presence increased to 26 countries providing a comprehensive range of products and services. The Peninsula
