For the first six months of 2014, net profit was QAR 5.1 billion ($1.4 billion), up by 7.0 per cent compared to last year for the Qatari bank, In a statement the bank said, “The Group’s prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost to income ratio) of 21.5 per cent, which is considered one of the best ratios among financial institutions in the region.”
For the six months of 2014, net profit was QAR 5.1 billion, up by seven per cent compared to last year. This was driven by operating income, including the share of results of associates, which increased to QAR 7.6 billion, up by five per cent compared to June 2013, demonstrating QNB Group’s success in achieving strong growth across the range of revenue sources.
Net interest income increased by six per cent to reach QAR 6.0 billion, with net fee and commission income and net gain from foreign exchange reaching QAR 1.0 billion and QAR 0.4 billion, respectively, reflecting success in diversifying sources of income.
The Group’s prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost to income ratio) of 21.5 per cent, which is considered one of the best ratios among financial institutions in the region.
Total assets increased by 7.9 per cent from June 2013 to reach QAR 466 billion, the highest ever achieved by the Group. This was the result of a strong growth rate of 10.1 per cent in loans and advances to reach QAR 326 billion.
The Group was able to maintain the ratio of non-performing loans to gross loans at 1.6 per cent, 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 123 per cent in June 2014.
At the same time QNB Group increased customer funding by 5.8 per cent to QAR 345 billion. This led to the Group’s loan to deposit ratio reaching 95 per cent.
Total Equity increased by 10.4 per cent from June 2013 to reach QAR 54 billion as at 30 June 2014. Earnings per Share reached QAR 7.2, compared to QAR 6.8 in June 2013.
The Group started implementing updated QCB and Basel III requirements for the calculation of the Capital Adequacy Ratio (CAR) from early 2014. The ratio stood at 15.9 per cent as at 30 June 2014, higher than the regulatory minimum requirements of the Qatar Central Bank. The Group is keen to maintain a strong capitalisation in order to support future strategic plans.
Based on the Group’s performance and the expanding international presence, the Group improved its ranking as the most valuable brand in the MENA region, with a world ranking of 101 (Brand Value: $1.81 billion) from 120 in 2012 (Brand Value: $1.31 billion).
QNB Group also implemented a Group wide FATCA framework that provides baseline requirements and guidance on FATCA implementation and compliance to ensure understanding of the FATCA concepts by different stakeholders in the Group. The establishment of the framework ensures QNB’s domestic and overseas Branches comply with international laws issued by FATCA.
QNB Group successfully joined Single Euro Payment Area (SEPA) via its European Operations. The SEPA initiative is to integrate the multitude of existing national euro credit transfer and euro direct debit schemes into a single set of European payment schemes. This implementation enables QNB Group to process euro payments and collections in the SEPA network and increases the efficiency of the cross-border payments.
For the six months of 2014, net profit was QAR 5.1 billion, up by seven per cent compared to last year. This was driven by operating income, including the share of results of associates, which increased to QAR 7.6 billion, up by five per cent compared to June 2013, demonstrating QNB Group’s success in achieving strong growth across the range of revenue sources.
Net interest income increased by six per cent to reach QAR 6.0 billion, with net fee and commission income and net gain from foreign exchange reaching QAR 1.0 billion and QAR 0.4 billion, respectively, reflecting success in diversifying sources of income.
The Group’s prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost to income ratio) of 21.5 per cent, which is considered one of the best ratios among financial institutions in the region.
Total assets increased by 7.9 per cent from June 2013 to reach QAR 466 billion, the highest ever achieved by the Group. This was the result of a strong growth rate of 10.1 per cent in loans and advances to reach QAR 326 billion.
The Group was able to maintain the ratio of non-performing loans to gross loans at 1.6 per cent, 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 123 per cent in June 2014.
At the same time QNB Group increased customer funding by 5.8 per cent to QAR 345 billion. This led to the Group’s loan to deposit ratio reaching 95 per cent.
Total Equity increased by 10.4 per cent from June 2013 to reach QAR 54 billion as at 30 June 2014. Earnings per Share reached QAR 7.2, compared to QAR 6.8 in June 2013.
The Group started implementing updated QCB and Basel III requirements for the calculation of the Capital Adequacy Ratio (CAR) from early 2014. The ratio stood at 15.9 per cent as at 30 June 2014, higher than the regulatory minimum requirements of the Qatar Central Bank. The Group is keen to maintain a strong capitalisation in order to support future strategic plans.
Based on the Group’s performance and the expanding international presence, the Group improved its ranking as the most valuable brand in the MENA region, with a world ranking of 101 (Brand Value: $1.81 billion) from 120 in 2012 (Brand Value: $1.31 billion).
QNB Group also implemented a Group wide FATCA framework that provides baseline requirements and guidance on FATCA implementation and compliance to ensure understanding of the FATCA concepts by different stakeholders in the Group. The establishment of the framework ensures QNB’s domestic and overseas Branches comply with international laws issued by FATCA.
QNB Group successfully joined Single Euro Payment Area (SEPA) via its European Operations. The SEPA initiative is to integrate the multitude of existing national euro credit transfer and euro direct debit schemes into a single set of European payment schemes. This implementation enables QNB Group to process euro payments and collections in the SEPA network and increases the efficiency of the cross-border payments.
Originally published on www.cpifinancial.net/
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