QNB Group, a leading bank in the Middle East and Africa, has posted a net profit of QR2.9 billion ($787 million) for the first three months of 2016, marking a 7.1 per cent increase compared to last year.

The Group maintained an efficiency ratio (cost to income ratio) of 22.7 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 March 2015 to reach QR550 billion ($151.1 billion), the highest ever achieved by the Group. This was driven by a growth rate of 16.4 per cent in loans and advances to reach QR402 billion ($110.4 billion).

The growth of the Group assets and liabilities has been affected by the sharp devaluation in Egyptian pound, in which total assets and customer deposits were negatively impacted by QR7 billion ($1.8 billion) and QR5 billion ($1.4 billion) respectively.

The Group was able to maintain the ratio of non-performing loans to gross loans at 1.4 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 120 per cent in March, the statement said.

QNB Group increased customer funding by 10.1 per cent to QR403 billion ($110.7 billion). This led to the Group’s loan to deposit ratio reaching 99.7 per cent.

Total equity increased by 11.1 per cent from March 2015 to reach QR60 billion ($16.6 billion) as at 31 March 2016. Earnings per Share reached QR3.4 ($0.9), compared to QR3.2 in March 2015.

Capital Adequacy Ratio (CAR) calculated as per the QCB and Basel III requirements stood at 15.8 per cent as at 31 March 2016, higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee.

QNB Group is present, through its subsidiaries and associate companies, in more than 27 countries and three continents providing a comprehensive range of products and services. The total number of staff is more than 15,300 operating from over 640 locations and with an ATM network of more than 1,400 machines. – TradeArabia News Service