QNB net profit rises by 4% to QR7.4bn; assets at QR887bn

DOHA:  QNB, one of the leading banks in the Middle East, Africa and Southeast Asia (MEASEA) region, reported a net profit of QR7.4bn ($2bn) for the first half of 2019, up by 4 percent compared to same period in previous year.

Driven by loans and advances, the bank’s total assets rose to QR887bn ($244bn), up by 5 percent from 30 June 2018, the highest ever achieved by the Group. Loans and advances grew by 5 percent to reach QR634bn ($174bn). Growth in the loan book was mainly funded by customer deposits which also grew by 5 percent to reach QR646bn ($177bn) as at 30 June 2019. Strong funding sources helped QNB Group to maintain the loans to deposits ratio at 98.3 percent, well within the regulatory limit.

The ratio of non-performing loans to gross loans amounted to 1.9 percent, a level considered one of the lowest amongst financial institutions in the MEA region, reflecting the strong quality of the Group’s loan book and effective management of credit risk. The Group’s conservative policy with respect to provisioning resulted in the coverage ratio maintained at 106 percent.

QNB Group Capital Adequacy Ratio (CAR) amounted to 18.4 percent, higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee.

During the first half of 2019, QNB successfully closed the syndication of its €2bn three-year senior unsecured term loan facility, successful completion of a $1bn bond issuance and a $850m Formosa bond issuances under its Euro Medium Term Note (EMTN) Programme in the international capital markets.

All of the above-mentioned deals attracted strong interest around the world from key global investors, reflecting investors’ confidence in QNB Group’s financial strength and its position as the largest financial institution in the Middle East and Africa region. It also reflects their trust and confidence in QNB Group’s strategy over the coming years.

QNB continued its outstanding achievements by topping the Middle East and Africa (MEA) region, on the Banker magazine’s Top 1000 World Banks list.

QNB Group serves a customer base of 24 million supported by 30,000 staff resources operating from more than 1,100 locations and 4,400 ATMs

Source from: The Peninsula