QNB Group, the largest financial institution in the Middle East and Africa (MEA) region, has posted a net profit reached QR12.4 billion ($3.4billion) for 2016, up by 10 per cent from last year.

Total assets reachedQR720 billion ($198 billion), up by 34 per cent from December 2015, the best absolute results in QNB Group’s history.

The Board of Directors have recommended to the General Assembly, the distribution of a cash dividend of 35 per cent of the nominal share value (QR3.5 per share) and a bonus share of 10 per cent of the share capital (1 share for every 10 shares). The financial results for 2016 along with the profit distribution are subject to Qatar Central Bank (QCB) approval.

The growth in assets was driven by loans and advances which grew by 34 per cent to reach QR520 billion ($143 billion). At the same time QNB Group increased its customer funding by 28 per cent to QR507 billion ($139 billion). This led to the Group’s loans to deposit ratio reaching103 per cent.

QNB Group’s prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost to income ratio) of 30.4 per cent, which is considered one of the best ratios among large financial institutions in the region.

The Group was able to maintain the ratio of non-performing loans to gross loans at 1.8 per cent, a level considered one of the lowest amongst banks in the MEA region, 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, improved the coverage ratio to reach114 per cent as of 31 December 2016.

Total Equity increased by 14 per cent from December 2015 to reach QR71 billion ($19 billion) as at 31 December 2016. Earnings per Share reached QR14.4 ($4.0), compared to QR13.4 ($3.7) in December 2015.

Capital Adequacy Ratio (CAR) calculated as per the QCB and Basel III requirements stood at 16.0 per cent as at 31 December 2016, higher than the regulatory minimum requirements of Qatar Central Bank and the Basel Committee.

During 2016, QNB acquired 99.88 per cent stake in Finansbank (now rebranded as QNB Finansbank), which enabled QNB affirm its position as the largest financial institution in MEA region.

Based on the Group’s continuous stellar performance and its diversified international presence, QNB maintained its position as the most valuable bank brand in the MEA region. This continues to recognise QNB’s position as the largest financial institution across the MEA region and the value inherent in the QNB brand.

2016 was another year of outstanding performance, the best absolute results in QNB Group’s history. This strong growth has helped QNB realise its vision of 2017 MEA Icon. Building on QNB’s continued success, QNB Group has embarked on the aspiration of becoming “a leading bank in the Middle East, Africa and Southeast Asia (MEASEA) by 2020”.

QNB Group is present, through its subsidiaries and associate companies, in more than 30countries across three continents providing a comprehensive range of products and services. QNB Group staff exceeds 28,000 serving more than 20 million customers through1,200 locations and 4,300 ATMs.- TradeArabia News Service