Qatar'sQNB Group, the largest financial institution in the Middle East and Africa (MEA) region, has posted a net profit of QR3.2 billion ($0.9 billion) for the first quarter of 2017, up by 12 per cent compared to previous year.

Total assets increased by 35 per cent from March2016 to reach QR743 billion ($204 billion). This was driven by a growth rate of 33 per cent in loans and advances to reach QR536billion ($147 billion).

QNB Group also attracted new customer deposits to comply with the cap on loans to deposit ratio of 100 per cent set by QCB, which is effective from the end of 2017.

These deposit mobilisation efforts resulted in increased customer funding by 34 per cent to reach QR541 billion ($149 billion) from March 2016. This led to the Group’s loan to deposit ratio reaching 99 per cent.

The Group’s prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost to income ratio) of 28.9 per cent, which is considered one of the best ratios among financial institutions in the region.

QNB Group was able to maintain the ratio of non-performing loans to gross loans at 1.8 per cent and coverage ratio at 114 per cent as at 31 March 2017, a level considered one of the best amongst financial institutions in the MEA region, reflecting the high quality of the Group’s loan book and the effective management of credit risk.

Total Equity increased by 17 per cent from March 2016 to reach QR71billion ($20 billion) as at 31March2017. Earnings per Share reached QR3.5 ($ 1.0), compared to QR3.1 ($ 0.9) in March2016.

Capital Adequacy Ratio (CAR) calculated as per the QCB and Basel III requirements stood at 15.7 per cent as at 31March 2017, 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.

In March 2017, QNB launched its operations in the Saudi capital, Riyadh. This branch is a significant milestone in QNB Group’s strategy of international expansion.

Based on the Group’s continuous stellar performance and its diversified international presence, QNB is now the most valuable banking brand in the MEA region, with  the value of its brand increased to $3.8 billion to rise to the 60th place globally, in addition to attaining the highest rating of AA+ in brand strength.

QNB Group is present, through its subsidiaries and associate companies, in more than 30 countries and 3 continents providing a comprehensive range of products and services. The total number of staff for the Group is more than 28,000 operating from 1,250 locations and 4,300 ATMs serving more than 21 million customers. – TradeArabia News Service