QNB Group has announced its financial results for the three months ended March 31 2013.

A net profit of QR 2.1 billion was achieved, up by 6.7 percent compared to the same period last year.

These results do not include financial results of NSGB- Egypt.

QNB Group has recently concluded the acquisition of a controlling stake in NSGB amounting to 97.12 percent.

It is anticipated that the incorporation of the financial results of NSGB will be completed during the second quarter of 2013.

Total assets increased by 22.2 percent from March 2012 to reach QR380 billion, the highest ever achieved by the bank.

This was the result of a strong growth rate of 28.7 percent in loans and advances to reach QR 259 billion, while customer deposits increased by 28.2 percent to QR280 billion.

The bank was able to maintain the ratio of non-performing loans to gross loans at 1.4 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 119 percent in March 2013.

The group’s prudent cost control policy and strong revenue generating capability allowed it to maintain efficiency ratio (cost to income ratio) of 17.7 percent, which is considered one of the best ratios among financial institutions in the region.

Total equity increased by 9.3 percent from March 2012 to reach QR46 billion as at March 31 2013.

The capital adequacy ratio stood at 20.5 percent as at March 31 2013, far higher than the regulatory requirements of QCB and the Basel Committee.

The group is keen to maintain a strong capitalization in order to support future strategic plans.