QNB Group, the largest financial institution in the Middle East and Africa (MEA) region, on Monday announced that the bank’s net profit reached QR3.6 ($1 billion) in the first quarter of 2022, an increase of 9 percent compared to the same period last year.
The bank’s operating income up by 16 percent to reach QR7.7 billion ($2.1 billion) reflecting the Group’s success in maintaining growth across a range of revenue sources.
Total assets of the bank reached QR1,108 billion ($304 billion) at the end of the first quarter, an increase of 6 percent from March 31, 2021, mainly driven by growth in loans and advances by 6 percent to reach QR763 billion ($210 billion).
Diversified customer deposits generation helped to increase customer deposits by 5 percent to reach QR788 billion ($216 billion) from March 31, 2021.
Furthermore, the Group’s drive for operational efficiency continues to yield cost savings and enhanced revenue sources that have enabled QNB Group to improve its efficiency (cost to income) ratio for the first quarter of 2022 to 20.8 percent from 23.4 percent on March 31, 2021, which is considered one of the best ratios among large financial institutions in the MEA region.
QNB Group’s strong asset liability management helped in maintaining the loans to deposits ratio at 96.8 percent as of March 31, 2022.
The ratio of non-performing loans to gross loans stood at 2.3 percent as of March 31, 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. Also during the period, QNB Group set aside QR1.9 billion ($0.5 billion) as a precaution for potential loan losses.
This helped the Group to increase its coverage ratio to 123 percent, which reflects the prudent approach adopted by the Group towards non-performing loans.
Total Equity increased to QR98 billion ($27 billion), up by 5 percent from March 2021. Earnings per share reached QR0.36 ($0.10).
QNB Group reported a strong capital adequacy ratio of 18.9 percent as of March 31, 2022, higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee.
QNB Group is supported by 27,000 staff resources operating from approximately 1,000 locations and 4,600 ATMs.