QNB Group, the largest banking institution in the Middle East and Africa region, announced its financial results for the three months ending on March 31, 2023.
Net profit for the three months ending March 31, 2023 amounted to 3.9 billion riyals (1.1 billion US dollars), an increase of 7% compared to the previous year. Operating income increased by 20% to 9.3 billion riyals (2.6 billion US dollars), which reflects the success of QNB Group in maintaining strong and sustainable growth in various sources of income.
Total assets amounted to 1,178 billion riyals (324 billion US dollars), an increase of 6% over the period ending on March 31, 2022. The main source of growth in total assets was loans and advances, which grew by 6% to reach 810 billion riyals (222 billion US dollars). . QNB Group continued to diversify funding sources, which led to an increase in customer deposits to reach 828 billion Qatari riyals (227 billion US dollars), an increase of 5% over the period ending on March 31, 2022. The group’s strong policy in managing assets and liabilities led to maintaining an excellent loan ratio to deposits amounted to 97.9% as of March 31, 2023. The group also continued to take several initiatives aimed at reducing expenses and finding sustainable sources of income generation. The efficiency ratio (cost-to-income ratio) was 21.7% as of March 31, 2023, which is considered one of the best ratios among large financial institutions in the Middle East and Africa region.
The non-performing loan ratio as a percentage of the total loan portfolio was 2.9% as at 31 March 2023, which is among the lowest among major banks in the Middle East and Africa region. During the first quarter, the Group made provisions for loan losses amounting to QR 2.5 billion (US$ 0.7 billion) as a precautionary measure to protect the Group from any potential loan losses. This contributed to the non-performing loan coverage ratio reaching 104%, which reflects the continued conservative approach adopted by the Group towards non-performing loans.
Total shareholders’ equity increased to 103 billion Qatari riyals (28 billion US dollars), an increase of 5% over the period ended March 31, 2022. Earnings per share reached 0.39 Qatari riyals (0.11 US dollars).
The Capital Adequacy Ratio (CAR) was 19.3% as at March 31, 2023. The Liquidity Coverage Ratio and the Net Stable Funding Ratio were 118% and 106%, respectively. These ratios are higher than the minimum regulatory requirements of the Qatar Central Bank and the Basel Committee.
The group has more than 29,000 employees across 900 locations and more than 4,800 ATMs.
