QNB records QAR4.7 billion net profit in first half of 2013
QNB Group, which was recently rated the World’s Strongest Bank by Bloomberg, announced its results today for the six months ended 30 June 2013.
These results include the financial results of National Societe Generale Bank SAE (NSGB) in Egypt, in which the Group concluded the acquisition of a controlling stake amounting to 97.12 percent in March 2013.
For the first half of 2013 net profit was QAR4.7 billion (USD1.3 billion), up by 15.1 percent compared to the same period last year.
The Group’s prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost to income ratio) of 20.5 percent, which is considered one of the best ratios among financial institutions in the region.
Total assets increased by 30.4 percent from June 2012 to reach QAR431 billion (USD118.5 billion), the highest ever achieved by the Bank. This was the result of a strong growth rate of 26.3 percent in loans and advances to reach QAR296 billion (USD81.4 billion).
The Group was able to maintain the ratio of non-performing loans to gross loans at 1.5 percent, a level considered one of the lowest amongst 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 percent in June 2013.
At the same time QNB Group increased customer funding by 32.7 percent to QAR326 billion (USD89.6 billion). This led to the Group’s loan to deposit ratio improving to 91 percent.
In order to diversify its source of funds, in April QNB Group announced the successful completion of a bond issuance under its Euro Medium Term Note (EMTN) program in the international capital markets. Under this program a USD1 billion tranche was issued on 22 April 2013 with a 7 year maturity and an attractive coupon rate of 2.875 percent. The Reg S issue generated strong interest from investors around the world.
Total Equity increased by 10.3 percent from June 2012 to reach QAR49 billion (USD13.3 billion) as at 30 June 2013. Earnings per Share reached QAR6.8 (USD1.9), compared to QAR5.9 in June 2012.
The capital adequacy ratio stood at 15.0 percent as at 30 June 2013, higher than the regulatory requirements of Qatar Central Bank and the Basel Committee. The Group is keen to maintain a strong capitalisation in order to support future strategic plans.
As a result of the Group’s high credit ratings and outstanding asset quality, it was selected as 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. 2012 was the first time that QNB was included in the list of eligible banks (78 banks were eligible globally) as a result of achieving more than USD100 billion of assets.
QNB Group received all regulatory approvals to open a representative office in China, and to establish a fully owned subsidiary in India under the name of “QNB (India) Private Limited” which is expected to commence its operations during the 3rd quarter of 2013.
NSGB, one of the Group’s subsidiaries, announced outstanding results for the period ended 30 June 2013, net profit reached EGP845 million (QAR439 million) up by 21.2 percent compared to the same period last year. Total assets increased by 17.3 percent from June 2012 to reach EGP74.9 billion (QAR39 billion). These results are consolidated under International Financial Reporting Standards.
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 USD1.31 billion).
With the addition of NSGB, the new subsidiary in India and the new office in China, QNB Group’s presence through its subsidiaries and associate companies increased to 26 countries providing a comprehensive range of advanced products and services. The total number of staff is almost 13,500 operating from over 570 locations, with an ATM network of almost 1,200 machines.