DOHA, Qatar, January 15, 2019 /PRNewswire/ --
QNB, the largest financial institution in the Middle East and Africa (MEA) region, announced its results for the year ended 31 December 2018.
(Photo: https://mma.prnewswire.com/media/808498/QNB_Group_Head_Office.jpg )
Net Profit for the year ended 31 December 2018 reached QAR13.8 billion (USD3.8 billion) , up by 5% compared to same period last year. Total assets increased by 6% from December 2017 to reach QAR862 billion (USD237 billion), the highest ever achieved by the Group and one of the best set of results in QNB Group's history.
The Board of Directors have recommended to the General Assembly for the distribution of a cash dividend of 60% of the nominal share value (QAR6.0 per share). The financial results for 2018 along with the profit distribution are subject to Qatar Central Bank (QCB) approval.
The key driver of total assets growth was from loans and advances which grew by 5% to reach QAR613 billion (USD168 billion). This was mainly funded by customer deposits which increased by 5% to reach QAR617 billion (USD169 billion) from December 2017. QNB's strong asset liability management capabilities helped QNB Group to improve its loans to deposits ratio to 99.3% as at 31 December 2018.
The Group's drive for operational efficiency is yielding cost-savings in addition to sustainable revenue generating sources. This helped QNB Group to improve the efficiency ratio (cost to income ratio) to 25.8%, from 29.1% last year, which is considered one of the best ratios among large financial institutions in the region.
The ratio of non-performing loans to gross loans amounted to 1.9% as at 31 December 2018, a level considered one of the lowest amongst financial institutions 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 resulted in the coverage ratio at 104% as at 31 December 2018.
Total Equity increased by 12% from December 2017 to reach QAR88 billion (USD24 billion) as at 31 December 2018. Earnings per Share reached QAR14.4 (USD3.9), compared to QAR13.7 (USD3.8) in December 2017.
Group Capital Adequacy Ratio (CAR) as at 31 December 2018 amounted to 19.0%, higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee. QNB Group successfully raised another QAR10 billion as Additional Tier 1 capital notes to support growth of the Group's activities and operations.
QNB Group serves a customer base of more than 23 million customers with more than 29,000 staff resources operating from more than 1,100 locations and 4,400 ATMs.
CONTACT: Yousef Fakhroo - Tel: +974-4497-5706