Profit ratio

QNB Announces QR 7.8 Billion Net Profit for the First Half

Doha: QNB, the largest financial institution in the Middle East and Africa (MEA) region, announced that its net profit (before the impact of hyperinflation) for the six months ended June 30, 2022 reached 7.8 billion QR ($2.1 billion), a 15% increase over the same period last year.

Net profit (after the impact of hyperinflation) for the six months ended June 30, 2022 reached QR 7 billion ($1.9 billion), an increase of 4% over the same period. last year.

Total assets as of June 30, 2022 reached QR 1,124 billion ($309 billion), an increase of 6% compared to June 30, 2021, mainly driven by good growth in loans and advances of 3% to reach QR 766 billion ($210 billion). The diversified generation of customer deposits helped increase customer deposits by 4% to reach QR 795 billion ($218 billion) as of June 30, 2021.

During the period, QNB Group’s operations in Turkey were subject to hyperinflationary accounting requirements in accordance with International Financial Reporting Standards, due to which a non-cash “net monetary loss” was reported in the income statement of the group for an amount of 744 million QR (204 million dollars). This accounting adjustment is neutral on the Group’s total equity.

Operating income rose 20% to QR 16.3 billion ($4.5 billion), reflecting the group’s success in maintaining growth across a range of revenue sources.

The Group’s drive for operational efficiencies continues to drive cost savings and improved revenue streams which has enabled QNB Group to improve the efficiency ratio (cost to revenue) to 20.2% from 22.9% , which is considered one of the best ratios among major financial institutions in the world. MAE region.

QNB’s strong asset and liability management capabilities have enabled the loan-to-deposit ratio to reach 96.4% as of June 30, 2022.

The ratio of non-performing loans to gross loans stood at 2.4% as of June 30, 2022, one of the lowest among financial institutions in the MEA region, reflecting the high quality of the Group’s loan portfolio and the management effective credit risk.

Additionally, during the six-month period ended June 30, 2022, QNB Group set aside QR 3.9 billion ($1.1 billion) as a precautionary measure for potential loan losses. This enabled the Group to increase its coverage ratio to 123%, reflecting the Group’s cautious approach to non-performing loans.

Total equity increased to QR 103 billion ($28 billion), up 5% from June 2021. Earnings per share reached QR 0.71 ($0.20).

The capital adequacy ratio (CAR) as of June 30, 2022 was 18.9% higher than the minimum regulatory requirements of the Central Bank of Qatar and the Basel Committee. QNB Group is supported by 27,000 employees operating from approximately 1,000 locations and 4,700 ATMs.