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QNB posts net profit of QR6.4 billion in H1

QNB posts net profit 
of QR6.4 billion in H1

Tribune News Network
Qatar National Bank (QNB) Group, the largest financial institution in the Middle East and Africa (MEA) region, on Sunday, announced that it has posted a net profit of QR6.4 billion ($1.8 billion) in the first six months of 2020. It’s a decrease of 13 percent from the same period last year, the bank said.
Considering the global economic conditions, QNB Group opted to increase the loan loss provisions during the first half of 2020 by QR1.2 billion ($320 million) to protect the Group from any adverse shocks in the loan book.
“This affected overall profitability for the Group. Operating Income increased by 2 percent to QR12.8 billion ($3.5 billion),” the bank said.
“This reflects QNB Group’s success in maintaining sustainable growth across a number of operational revenue segments, despite the fee related concessions offered to customers located in QNB Group’s key markets affected by the COVID-19 pandemic,” the bank said.
Total assets of QNB Group reached QR972 billion ($267 billion), an increase of 10 percent from June 30 last year. Loans and advances grew by 11 percent to reach QR705 billion ($194 billion) that supported growth in total assets.
Strong customer deposits generation helped to increase customer deposits by 10 percent to reach QR712 billion ($196 billion) from June 30, 2019.
In addition, as another response to current economic conditions, QNB Group renewed its operational rationalisation, which is yielding cost-savings that has helped the bank materially improve efficiency (cost to income) ratio to 24.5 percent, from 25.6 percent in June 2019. It is considered one of the best ratios among large financial institutions in the MEA
NPL ratio amounted to 2 percent as of June 30, 2020, 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.
QNB Group achieved a coverage ratio of 100 percent that reflects the conservative approach adopted by the Group towards non-performing loans.
Total equity reached QR92 billion ($25 billion), up by 3 percent from June last year. Earnings per share stood at QR0.64 ($0.2).
QNB Group reported robust levels of capital, liquidity, and funding measured in terms of CAR achieved at 18.3 percent, LCR at 159 percent and NSFR at 104 percent. All of the required ratios were higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee.
QNB Group serves more than 20 million customers supported by 29,000 staff resources operating from 1,000 locations and more than 4,200 ATMs.