QNB Group Q1 net profit rises 9pc to $1 billion
COMMERCIAL NEWS
QNB Group, the largest financial institution in the Middle East and Africa (MEA) region, has posted a net profit for the three months (Q1) ended March 31, 2022 of QR3.6 billion ($1 billion), a rise of 9% on the same period last year.
Operating income was up by 16% to reach QR7.7 billion ($2.1 billion) which reflects the group's success in maintaining growth across a range of revenue sources.
Total assets as of March 31, 2022 reached QR1.108 trillion ($304 billion), an increase of 6% from March 31, 2021, mainly driven by growth in loans and advances by 6% to reach QR763 billion ($210 billion).
Customer deposits
Diversified customer deposits generation helped to increase customer deposits by 5% to reach QR788 billion ($216 billion) from March 31, 2021.
Furthermore, the group's drive for operational efficiency continues to yield cost-savings and enhanced revenue sources that has enabled QNB Group to improve its efficiency (cost to income) ratio to 20.8% from 23.4% last year, which is considered one of the best ratios among large financial institutions in the MEA region.
QNB Group's strong asset liability management helped it in maintaining loans to deposits ratio at 96.8%.
NPL lowest
The ratio of non-performing loans to gross loans stood at 2.3%, one of the lowest amongst financial institutions in the MEA region, reflecting the high quality of the group's loan book and the effective management of credit risk.
Also during the period, QNB Group set aside QR1.9 billion ($0.5 billion) as a precaution for potential loan losses. This helped the group to increase its coverage ratio to 123%, which reflects the prudent approach adopted by the group towards non-performing loans.
Total equity increased to QR98 billion ($27 billion), up by 5% from March 2021. Earnings per share reached QR0.36 ($0.10).
Capital adequacy
QNB Group reported a strong capital adequacy ratio of 18.9%, higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee.
QNB Group is supported by 27,000 staff resources operating from approximately 1,000 locations and 4,600 ATMs.-- TradeArabia News Service
