DOHA: The QNB Group has reported net profits of QR2.1bn for the first quarter (January to March 2013), up 6.7 percent over Q1 of 2012, the Group, announcing its financials for the first three months of 2013, said yesterday.
The results did not include the financial performance of NSGB-Egypt. QNB Group has recently concluded the acquisition of a controlling stake in NSGB amounting to 97.12 percent. It is anticipated that the incorporation of the financial results of NSGB will be completed during the second quarter of 2013, a QNB Group statement said yesterday.
Total assets of the Group increased by 22.2 percent from March 2012 to QR380bn, the highest ever achieved by the bank.
This was the result of a strong growth rate of 28.7 percent in loans and advances to reach QR259bn, while customer deposits increased by 28.2 percent to QR280bn. The Group was able to maintain the ratio of non-performing loans to gross loans at 1.4 percent, a level considered one of the lowest amongst banks in the Mena 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 119 percent in March 2013.
The Group’s cost control policy and revenue generating capability allowed it to maintain efficiency ratio (cost to income ratio) of 17.7 percent, which is considered one of the best ratios among financial institutions in the region.
Total Equity increased by 9.3 percent from March 2012 to QR46bn in Q1 of 2013.
The capital adequacy ratio stood at 20.5 percent as at March 31, 2013, far higher than the regulatory requirements of the Qatar Central Bank and the Basel Committee. The Group is keen to maintain strong capitalisation in order to support future strategic plans.
During Q1 of 2013, the QNB Group has successfully completed the acquisition of a controlling stake in NSGB amounting to 97.12 percent, which included the full stake of Société Générale — France amounting to 77.17 percent along with 19.95 percent acquired from other shareholders.
This acquisition is considered one of the largest in the Middle East and is in line with the QNB Group’s strategy to expand its presence in selected markets in the region that have a strong growth potential.
This acquisition is an important step for the QNB Group to realise its vision of being a Middle East and Africa Icon by 2017. As a result of the bank’s high credit ratings and outstanding asset quality, it was selected as one of the world’s 50 safest financial institutions by Global Finance.
The bank is currently ranked as the most valuable brand in the Mena region, with a world ranking of 120.
With the acquisition of NSGB, QNB Group’s total number of staff exceeded 13,000 operating in 25 countries from over 560 locations, with a network of 1,150 ATMs. The Peninsula
