QNB Group, a leading financial institution in the Middle East and Africa (MEA) region, has posted a net profit of QR10.3 billion ($2.75 billion) for the nine months of the year, up by 6 per cent compared to the same period in 2016.

The decrease in net interest income was primarily driven by the devaluation of the EGP which took place in late 2016, a statement said.

The Group improved the efficiency ratio (cost to income ratio) to 29 per cent as at 30 September, from 30.1 per cent in September 2016.

Total assets reached QR792 billion, up by 11 per cent from September 2016, the highest ever achieved by the Group. This was driven by a growth rate of 14 per cent in loans and advances to reach QR579 billion.
                
QNB Group was successful in attracting new customer deposits to comply with the cap on loans to deposit ratio of 100 per cent set by QCB, which will be effective from end of 2017. These deposit mobilisation efforts resulted in increased customer funding by 15 per cent to reach QR574 billion from September 2016.This led to the reduction in the Group’s loan to deposit ratio to 100.8 per cent, compared with 101.3 per cent in September 2016.

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 financial institutional 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 continued with the coverage ratio reaching 111 per cent in September.

In September QNB Group completed the issuance of Formosa bonds under its Euro Medium Term Note (EMTN) programme and listed on the Taipei Stock Exchange. Under this programme, a $630 million tranche was issued with a maturity of 30 years callable every five years.

In July, QNB Group commenced its operations in the city of Mumbai, the economic capital of the Republic of India. This network expansion comes in support of its vision to become a leading bank in the Middle East, Africa, and Southeast Asia by 2020, in addition to establishing a foothold in highly competitive markets.

Through its new branch in India, the Group offers a full spectrum of banking products and services. The Group also offers its rich experience in wealth management, investment portfolios, project finance, and the provision of smart banking solutions and a range of innovative products and services designed to suit the requirements of the Indian market.- TradeArabia News Service