Doha: QNB Group, the largest financial institution in the Middle East and Africa (Mea) region, has announced a net profit (after the impact of hyperinflation) of QR11.0bn ($3.0bn), recording an increase of 7 percent compared to QR10.3bn ($2.8bn) during the same period last year, despite successfully overcoming the negative impact of hyperinflation accounting adjustment of QR1.3bn ($356m), the Bank said in its financial result for the nine months period ended September 30, 2022.
Net Profit before the impact of hyperinflation during the period reached QR12.3bn ($3.4bn), showing an increase of 20 percent compared to the same period last year.
Total Equity increased to QR106bn ($29bn), up by 5 percent from September 2021. Earnings per share reached QR1.10 ($0.30).
Operating Income increased by 24 percent to reach QR25.6bn ($7.0bn) which reflects the Group’s success in maintaining growth across a range of revenue sources.
Total Assets as at September 30, 2022 recorded an increase of 5 percent from September 30, 2021 to reach QR1,135bn ($312bn), mainly driven by growth in high quality liquid assets.
Strong customer deposit campaigns helped to increase customer deposits by 1 percent to reach QR794bn ($218bn) from September 30, 2021. As result of strong liquidity position of QNB Group, the loans to deposits ratio reached 96.1 percent as at September 30, 2022.
The Group’s drive for operational efficiency continues to yield cost-savings and enhanced revenue sources that enabled QNB Group to improve the efficiency (cost to income) ratio to 19.3 percent from 22.5 percent, which is considered the best ratio among large financial institutions in the Mea region.
The NPL ratio continued to remain stable at 2.4 percent as at September 30, 2022, one of the lowest amongst financial institutions in the Mea region, reflecting the high quality of the Group’s loan book and the effective management of credit risk. Coverage ratio also reached 121 percent after including QR6.2bn ($1.7bn) as a precaution for potential loan losses.
Group Capital Adequacy Ratio (CAR) as at September 30, 2022 amounted to 19 percent higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee. In addition, the hyperinflation accounting adjustments relating to the Bank’s Turkey operations had incremental impact on Group’s capital by about QR3.5bn.
QNB Group extends to more than 30 countries across three continents providing a comprehensive range of advanced products and services. The total number of employees is more than 27,000 operating through 1,000 locations, with an ATM network of more than 4,700 machines.
