QNB records QR3.6bn net profit for first quarter; total assets up 6%

DOHA: QNB, one of the leading banks in the Middle East, Africa and Southeast Asia (MEASEA) region, recorded a net profit of QR3.6bn ($0.98bn) for the three months ended March 2019, up by 4 percent compared to previous year, despite the impact of the Turkish Lira devaluation. Total assets increased to QR882bn ($242bn), up 6 percent from March 2018, the highest ever achieved by the Group.

The key driver of total assets growth was from loans and advances which grew by 5 percent to reach QR623bn ($171bn). This was mainly funded by customer deposits which increased by 5 percent to reach QR634bn ($174bn) as at 31 March 2019. The growth of the Group assets and liabilities has been partly affected by the devaluation in the Turkish Lira. Despite the devaluation impact, QNB’s strong asset liability management capabilities helped QNB Group to improve its loans to deposits ratio to 98.3 percent as at 31 March 2019.

QNB Group’s robust cost controls helped to improve the efficiency ratio (cost to income ratio) to 25.9 percent, from 27.8 percent last year, which is considered one of the best ratios among large financial institutions in the MEA region.

The ratio of non-performing loans to gross loans amounted to 1.9 percent as at 31 March 2019, a level considered 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. The Group’s conservative policy in regard to provisioning resulted in the coverage ratio of 106 percent as at 31 March 2019.

Group Capital Adequacy Ratio (CAR) as at 31 March 2019 amounted to 18.5 percent, higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee.

During the first quarter of 2019, QNB successfully closed the syndication of its EUR2.0 billion three year senior unsecured term loan facility which is a testament to QNB’s strong credit profile. The Group also announced the successful completion of a $1.0bn bond issuance under its Euro Medium Term Note (EMTN) Programme in the international capital markets, maturing in 5 years with an attractive fixed rate coupon of 3.5 percent per annum.

These issuances attracted strong interest around the world by 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 high confidence in QNB Group’s strategy over the coming years.

حققت مجموعة «QNB» صافي ربح قدره 3.6 مليار ريال (0.98 مليار دولار) خلال الربع الأول من العام الحالي، بزيادة نسبتها 4% مقارنة بالفترة ذاتها من السنة الماضية.

كما ارتفع إجمالي موجودات المجموعة بنسبة 6% خلال عام واحد، ليصل إلى 882 مليار ريال (242 مليار دولار)، وهو أعلى مستوى للموجودات في تاريخ المجموعة.

كان المصدر الرئيسي لنمو إجمالي الموجودات هو القروض والسلف التي نمت بنسبة 5% لتصل إلى 623 مليار ريال (171 مليار دولار).

وقد مُوّل هذا النمو بشكل أساسي من خلال ودائع العملاء التي ارتفعت بنسبة 5% لتصل إلى 634 مليار ريال (174 مليار دولار).

كما تأثر نمو الموجودات والمطلوبات للمجموعة بالانخفاض في الليرة التركية. وبالرغم من ذلك، أدت سياسة المجموعة القوية في إدارة الموجودات والمطلوبات إلى تحسين نسبة القروض إلى الودائع لدى مجموعة «QNB» لتصل إلى 98.3% في 31 مارس 2019.