QNB

QNB Group achieves record financial results for the period ending 30 September 2012

Posted on : Thu, 11 Oct 2012

Doha, 11 Oct 2012 - QNB Group, one of the largest and one of the most highly regarded financial institutions in the Middle East and North Africa region, has announced its financial results for the nine months ended 30 September 2012. The group recorded a net profit of QR6.2 billion, up by 15.0% compared to the same period last year.

Total assets increased by 25.3% since 30 September 2011 to reach QR351.0 billion, the highest ever achieved by the Group. This was the result of a strong growth rate of 41.9% in loans and advances to reach QR238.6 billion. Meanwhile, customer deposits recorded solid growth of 37.4% to QR268.5 billion.

The Bank was able to maintain the ratio of non-performing loans to total loans at 1.2%, a level considered to be the lowest amongst banks in the Middle East and North Africa. Provisions were conservatively managed, as the coverage ratio reached 116%.

The efficiency ratio (cost to income ratio) stood at 16.6%, compared to 15.3% in September 2011, one of the best ratios among financial institutions in the Middle East and North Africa.

Total shareholders’ equity increased by 13.1% since 30 September 2011 to reach QR46.2 billion. QNB Group maintains a strong capital adequacy ratio higher than the regulatory requirements of Qatar Central Bank and Basel Committee. The Group is keen to maintain a strong capitalisation in order to support future strategic plans.

Based on the Group’s strong capitalization and high credit ratings, QNB was named one of the World’s 50 Safest Banks and one of the Safest Banks in the Middle East, according to the latest update published by Global Finance in April 2012.

QNB Group launched its debut bond issue under its Euro Medium Term Note Program in the international capital markets which amounted to US$1.0 billion with a 5-year maturity.

This highly successful issue received an overwhelming interest from regional and international investors. The bank has also successfully closed a syndicated facility amounting to US$1.8 billion with a maturity of three years that was competitively priced. This facility received a very strong interest from regional and international financial institutions and was several times oversubscribed.

In line with QNB Group’s strategy for international expansion, the Bank has increased its stake in Mansour Bank in Iraq to 51%. As a result, QNB Group will effectively manage Mansour Bank and provide support to enhance its ability to offer a comprehensive range of products and services. Also, the Bank’s stake in the UAE based Commercial Bank International was raised to 40% and the Bank has acquired a 49% stake in Commerce and Development Bank in Libya, one of the leading private sector banks in the country.

QNB Group which operates in 24 countries around the world through its network, subsidiaries and associate companies employs more than 8,500 staff operating from 383 branches and offices that are supported by an ATM network that exceeds 780 machines.

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, with a world ranking of 114 from 189 in 2011.