QNB Group posts 4% jump in 9-month profit to QR11.2bn

Gulf Times - Gulf Times Business - - FRONT PAGE -

QNB Group, one of the lead­ing banks in the Mid­dle East, Africa and South­east Asia (MEASEA) re­gion, has re­ported a 4% yearon-year jump in net profit to QR11.2bn in the first nine months ended Septem­ber 30, 2019.

To­tal as­sets grew 7% to QR912bn, the high­est ever achieved by the group. Loans and ad­vances ex­panded 8% to QR653bn, which con­trib­uted to the to­tal as­set ex­pan­sion.

This was mainly funded by cus­tomer de­posits, which showed a 7% growth to QR663bn in the first nine months of this year.

QNB’s strong as­set li­a­bil­ity man­age­ment ca­pa­bil­i­ties helped it to im­prove its loans-to-de­posits ra­tio to 98.6% at the end of Septem­ber 30, 2019.

Non-per­form­ing loans, or NPLs, ac­counted for 1.9% dur­ing Jan­uary-Septem­ber 2019, a level con­sid­ered one of the low­est amongst fi­nan­cial in­sti­tu­tions in the Mid­dle East and Africa re­gion. It re­flects the high qual­ity of the group’s loan book and the ef­fec­tive man­age­ment of credit risk.

At the end of Septem­ber 2019, the lender achieved a cov­er­age ra­tio of 104% due to its con­ser­va­tive ap­proach to loan loss pro­vi­sion­ing.

The bank’s cap­i­tal ad­e­quacy ra­tio (CAR) stood at 18.2%, which is higher than the reg­u­la­tory min­i­mum re­quire­ments of the Qatar Cen­tral Bank and the Basel Com­mit­tee.

Dur­ing Septem­ber 2019, QNB Group ob­tained the reg­u­la­tory ap­provals from the Hong Kong Mone­tary Author­ity to open a branch in Hong Kong, one of the global fi­nan­cial hubs. The branch will pro­vide a full range of bank­ing prod­ucts and ser­vices to in­di­vid­u­als and cor­po­rate en­ti­ties.

QNB Group’s ex­pan­sion in Hong Kong is an­other fun­da­men­tal step in its in­ter­na­tional ex­pan­sion plans to sup­port its growth strat­egy and mar­ket lead­er­ship in MEASEA, as well as to es­tab­lish a foothold in highly com­pet­i­tive mar­kets.

QNB Group serves a cus­tomer base of more than 24mn cus­tomers with more than 29,000 staff re­sources oper­at­ing from more than 1,100 lo­ca­tions and 4,300 ATMs.

Global in­dex com­piler MSCI had re­cently said QNB had sub­stan­tially im­proved its ESG (en­vi­ron­ment so­cial and gover­nance) rat­ings in a short span to oc­cupy the top slot among the global peers.

MSCI started cov­er­ing the bank in Oc­to­ber 2015 with ‘BB’ rat­ing and in 2016 and 2017, it be­came ‘BBB’ and in Au­gust 2019, it was up­graded to ‘A’ rat­ing due to ‘strong po­si­tion for meet­ing dig­i­tal bank­ing chal­lenges.’

QNB Group’s to­tal as­sets in the first nine months of 2019 grew 7% to QR912bn, the high­est ever achieved by the group

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