QNB Group, the largest lender in the Arab world, has posted a net profit of QR5.6 billion ($1.5 billion) for the six months of 2015, up by 10.2 per cent compared to 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 21 per cent, which is considered one of the best ratios among financial institutions in the region, a statement said.

Total assets increased by 9.7 per cent from June 2014 to reach QR511 billion ($140.2 billion), the highest ever achieved by the Group. This was the result of a strong growth rate of 9.2 per cent in loans and advances to reach QR356 billion ($97.8 billion).

The Group was able to maintain the ratio of non-performing loans to gross loans at 1.5 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 133 per cent in June 2015.

QNB Group also increased customer funding by 10.4 per cent to QR381 billion ($104.7 billion). This led to the Group’s loan to deposit ratio reaching 93 per cent.

Total equity increased by 7.4 per cent from June 2014 to reach QR58 billion ($15.8 billion) as at 30 June 2015. Earnings per Share reached QR8.0 ($2.2), compared to QR7.2 in June 2014.

Capital Adequacy Ratio (CAR) calculated as per the QCB and Basel III requirements stood at 14.4 per cent as at June 30, higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee.

The Group is keen to maintain a strong capitalisation in order to support future strategic plans, a statement said. – TradeArabia News Service