QNB Group, the World’s Strongest Bank and the leading bank in the Middle East and North Africa, announced its results today for the nine months ended 30 September 2013. These results include the financial results of NSGB in Egypt, in which the Group concluded the acquisition of a controlling stake amounting to 97.12% in March 2013.
For the nine months of 2013 Net Profit was QR7.1 billion (USD2.0 billion), up by 14.1% compared to the same period 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 20.4%, which is considered one of the best ratios among financial institutions in the region.
Total assets increased by 24.5% from September 2012 to reach QR437 billion (USD120.0 billion), the highest ever achieved by the Group. This was the result of a strong growth rate of 27.4% in loans and advances to reach QR304 billion (USD83.5 billion).
The Group was able to maintain the ratio of non-performing loans to gross loans at 1.6%, 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 119% in September 2013.
At the same time QNB Group increased customer funding by 23.3% to QR331 billion (USD91.0 billion). This led to the Group’s loan to deposit ratio to reach 92%.
In order to diversify its source of funds, in April QNB Group announced the successful completion of a bond issuance under its Euro Medium Term Note (EMTN) program in the international capital markets. Under this program a USD1.0 billion tranche was issued on 22 April 2013 with a 7 year maturity and an attractive coupon rate of 2.875%. The Reg S issue generated strong interest from investors around the world.
Total Equity increased by 10.5% from September 2012 to reach QR51 billion (USD14.0 billion) as at 30 September 2013. Earnings per Share reached QR10.2 (USD2.8), compared to QR8.9 in September 2012.
The capital adequacy ratio stood at 14.6% as at 30 September 2013, higher than the regulatory requirements of Qatar Central Bank and the Basel Committee. The Group is keen to maintain a strong capitalisation in order to support future strategic plans.
As a result of the Group’s high credit ratings and outstanding asset quality, it was selected as one of the world’s 50 safest financial institutions by Global Finance.
QNB Group tops the list in the Bloomberg Markets magazine’s annual ranking of the World’s Strongest Banks. 2012 was the first time that QNB was included in the list of eligible banks (78 banks were eligible globally) as a result of achieving more than USD100 billion of assets.
QNB Group opened a representative office in China and established a fully owned subsidiary in India under the name of “QNB (India) Private Limited”.
Based on the Group’s continuous strong performance and the expanding international presence, the bank is currently ranked as the most valuable brand in the MENA region, with a world ranking of 120 (Brand Value: USD1.31 billion).
With the addition of NSGB, the new subsidiary in India and the new office in China, QNB Group’s presence through its subsidiaries and associate companies increased to 26 countries providing a comprehensive range of advanced products and services. The total number of staff is almost 13,500 operating from over 570 locations and with an ATM network of more than 1,200 machines.