On the back of strong revenues and efficient cost to income ratio, QNB Group posted a first-half net profit of QR4.7bn, up 15.7% on the same period last year.
Total assets jumped 30.4% from June 2012 to reach QR431bn, the highest ever achieved by the banking major, the “world’s strongest bank and leader in the Mena (Middle East and North Africa) region”.
This, QNB said was the result of a strong growth rate of 26.3% in loans and advances to reach QR296bn in H1, 2013.
The group’s “prudent” cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost to income) of 20.5%, which is considered “one of the best” ratios among financial institutions in the region.
QNB was able to maintain the ratio of non-performing loans (NPLs) to gross loans at 1.5%, a level considered “one of the lowest” among 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 118% in June 2013.
At the same time QNB Group increased customer funding by 32.7% to QR326bn. This led to the group’s loan to deposit ratio improving to 91%.
In order to diversify its source of funds, QNB Group had in April announced the successful completion of a bond issuance under its Euro Medium Term Note (EMTN) programme in the international capital markets.
Under this programme, a $1bn tranche was issued on April 22 with a seven-year maturity and an attractive coupon rate of 2.875%. The “Reg S issue” generated “strong interest” from investors around the world.
QNB’s total equity increased by 10.3% from June 2012 to reach QR49bn as on June 30. Earnings per share (EPS) reached QR6.8 compared to QR5.9 in June 2012.
The capital adequacy ratio (CAR) stood at 15% in June 2013, higher than the regulatory requirements of the Qatar Central Bank and the Basel Committee.
The group said it is keen to maintain a “strong capitalisation” in order to support future strategic plans.
The first-half results include that of NSGB in Egypt, in which the group concluded the acquisition of a controlling stake amounting to 97.12% in March 2013.
As a result of the group’s “high” credit ratings and “outstanding” asset quality, it was selected 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”.
For the first time last year, QNB was included in the list of eligible banks (78 banks 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 bank is currently ranked as the most valuable brand in the Mena region and with a world ranking of 120 (brand value $1.31bn).
With the addition of NSGB, the new subsidiary in India and the new office in China, QNB’s presence through its subsidiaries and associate companies have increased to some 26 countries providing a comprehensive range of advanced products and services.
The group now employs a total of 13,500 staff operating from more than 570 locations, with an ATM network of almost 1,200 machines.
Source: Caye Global News, Gulf Times
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