Doha-based QNB Group, a leading bank in the Middle East and Africa (MEA) region, has announced a net profit of QR6.2 billion ($1.70 billion) for the first half of 2016, up 12 per cent compared to the previous year.

The total assets increased by 36 per cent from June 2015 to reach QR692 billion ($190 billion), the highest ever achieved by the group, said a statement from QNB.

QNB Group recently completed the acquisition of 99.81 per cent stake in Turkey’s Finansbank, it said.

According to the bank, the growth in assets was driven by loans and advances which grew by 39 per cent to reach QR497 billion ($136 billion).

At the same time it increased customer funding by 29 per cent to QR488 billion ($134 billion), which led to the group’s loans to deposit ratio reaching 101.7 per cent, it added.

QNB Group said its prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost to income ratio) of 30 per cent, which is considered one of the best ratios among large financial institutions in the region.

Its total equity increased by 27 per cent from June 2015 to reach QR73 billion ($20.05 billion) as June 30, 2016. Earnings per share reached QR7.4 ($2.03), compared to QR6.7 ($1.84) in June 2015.

QNB Group successfully raised QR 10 billion ($2.75 billion) in additional tier 1 perpetual capital notes, to strengthen the group’s capital adequacy ratios (CAR) and to support future growth across the group, it added.-TradeArabia News Service