QNB’s net profit up 12% to $1.7 billion

QNB Group reports an increase in its net profit by 12 percent to QR6.2 billion ($1.7 billion) in the first half of 2016.
Announcing its results for the six months ended June 30, 2016, the MEA’s major bank stated that its total assets increased by 36 percent from June 2015, to reach QR692 billion ($190 billion), the highest ever achieved by the group.
On June 15, 2016, QNB Group completed the acquisition of 99.81 percent stake in Finansbank AS, Turkey.
The growth in assets was driven by loans and advances, which grew by 39 percent to reach QR497 billion ($136 billion).
At the same time, QNB Group increased customer funding by 29 percent to QR488 billion ($134 billion). This led to the group’s loans to deposit ratio reaching 101.7 percent.
QNB Group’s cost control policy and revenue generating capability allowed it to maintain an efficiency ratio (cost to income ratio) of 30 percent, which is considered one of the best ratios among large financial institutions in the region.
The group was able to maintain the ratio of non-performing loans to gross loans at 1.8 percent, a level considered one of the lowest among large banks in the MEA region, reflecting the high quality of the group’s loan book and the effective management of credit risk.
The group’s policy in regard to provisioning continued with the coverage ratio reaching 127 percent in June 30, 2016.
Total Equity increased by 27 percent from June 2015 to reach QR73 billion ($20 billion) as at June 30, 2016. Earnings per share reached QR7.4 ($2.0), compared to QR6.7 in June 2015.
QNB Group raised QR10 billion in additional tier 1 perpetual capital notes, to strengthen its capital adequacy ratios and support its future growth.