AMMAN: The QNB Group announced its results for 1ST quarter of 2015. The Net Profit was QAR2.7 billion up by 10.1% compared to last year. The Group’s prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost to income ratio) of 21.7%, which is considered one of the best ratios among financial institutions in the region.
Total assets increased by 9.4% from March 2014 to reach QAR502 billion (USD137.8 billion), the highest ever achieved by the Group. This was the result of a strong growth rate of 8.9% in loans and advances to reach QAR345 billion (USD94.9 billion).
The Group was able to maintain the ratio of non-performing loans to gross loans at 1.5%, a level considered one of the lowest amongst banks in the Middle East and Africa, reflecting the high quality of the Group’s loan book and the effective management of credit risk. The Group’s conservative policy in regard to provisioning continued with the coverage ratio reaching 129% in March 2015.At the same time QNB Group increased customer funding by 6.8% to QAR369 billion (USD101.4 billion). This led to the Group’s loan to deposit ratio reaching 94%.
Total Equity increased by 6.0% from March 2014 to reach QAR54 billion (USD15.0 billion) as at 31 March 2015. Earnings per Share reached QAR3.8 (USD1.1), compared to QAR3.5 in March 2014.Capital Adequacy Ratio (CAR) calculated as per the QCB and Basel III requirements stood at 15.1% as at 31 March 2015, higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee. The Group is keen to maintain a strong capitalisation in order to support future strategic plans.
