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