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Qatar / Emirates Business
QNB Group, the leading bank in the Middle East and Africa (MEA) region, announced its results for the six months ended 30 June 2016.
For the first half of 2016, Net Profit reached QAR6.2 billion, (USD 1.7 billion) up by 12% compared to last year. Total assets increased by 36% from June 2015 to reach QAR692 billion (USD190 billion), the highest ever achieved by the Group.
On 15 June 2016, QNB Group completed the acquisition of 99.81% stake in Finansbank A.Ş. – Turkey.
The growth in assets was driven by loans and advances which grew by 39% to reach QAR497 billion (USD136 billion). At the same time QNB Group increased customer funding by 29% to QAR488 billion (USD134 billion). This led to the Group’s loans to deposit ratio reaching 101.7%.
QNB Group’s prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost to income ratio) of 30%, which is considered one of the best ratios among large financial institutions in the region.
The Group was able to maintain the ratio of non-performing loans to gross loans at 1.8%, a level considered one of the lowest amongst large banks in the MEA region, 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 127% in 30 June 2016.