QNB Group re­ports QAR10.3bn net profit for first nine months of 2017

Muscat Daily - - BUSINESS -

Doha, Qatar - QNB Group, the largest fi­nan­cial in­sti­tu­tion in the Mid­dle East and Africa (MEA) re­gion, an­nounced its re­sults for the nine months ended Septem­ber 30, 2017, which is the high­est in the his­tory of QNB Group.

For the nine months ended Septem­ber 30, 2017, net profit of QNB Group in­creased to QAR10.3bn, up by six per cent com­pared to last year, demon­strat­ing QNB Group’s suc­cess in main­tain­ing ro­bust growth while con­trol­ling costs, ac­cord­ing to a press re­lease is­sued on Wed­nes­day.

The group’s pru­dent cost con­trol pol­icy and strong rev­enue gen­er­at­ing ca­pa­bil­ity helped to im­prove the ef­fi­ciency ra­tio (cost to in­come ra­tio) to 29 per cent as at Septem­ber 30, 2017, from 30.1 per cent a year ago, which is con­sid­ered one of the best ra­tios among fi­nan­cial in­sti­tu­tions in the re­gion. To­tal as­sets reached QAR792bn, up by 11 per cent from Septem­ber 2016, the high­est ever achieved by the group. This was driven by a growth rate of 14 per cent in loans and ad­vances which reached to QAR579bn.

QNB Group was suc­cess­ful in at­tract­ing new cus­tomer de­posits to com­ply with the cap on loans to de­posit ra­tio of 100 per cent set by Qatar Cen­tral Bank (QCB), which will be ef­fec­tive from end of 2017.

These de­posit mo­bil­i­sa­tion ef­forts re­sulted in in­creased cus­tomer fund­ing by 15 per cent to QAR574bn com­pared with Septem­ber 2016. This led to the re­duc­tion in the group’s loan to de­posit ra­tio to 100.8 per cent, com­pared with 101.3 per cent in Septem­ber 2016. This clearly demon­strates the suc­cess of QNB’s strat­egy to di­ver­sify its fund­ing sources.

The group was able to main­tain the ra­tio of non­per­form­ing loans to gross loans at 1.8 per cent, a level con­sid­ered one of the low­est amongst fi­nan­cial in­sti­tu­tional 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 con­tin­ued with the cov­er­age ra­tio reach­ing 111 per cent in Septem­ber 2017.

QNB Group’s to­tal as­sets reached QAR792bn, up by 11 per cent from Septem­ber 2016, the high­est ever achieved by the group

Newspapers in English

Newspapers from Oman

© PressReader. All rights reserved.