Doha, Qatar, October 10, 2022 /PRNewswire/ — QNB, the largest financial institution in the Middle East and Africa (MEA), announced its results for the nine months ended September 30, 2022.
Net profit before the impact of hyperinflation for the nine months ended September 30, 2022 achieved 12.3 billion QR ($3.4 billion), an increase of 20% compared to the same period last year.
Net profit after the impact of hyperinflation to reach QR 11.0 billion ($3.0 billion), an increase of 7% compared to the same period last year, despite the ability to overcome the negative impact of the hyperinflation accounting adjustment of 1.3 billion QR ($356 million).
Operating income increased by 24% to reach QR 25.6 billion ($7.0 billion) which reflects the Group’s success in maintaining growth across a range of revenue sources.
Total assets at September 30, 2022 recorded a 5% increase from September 30, 2021 reach 1,135 billion QR ($312 billion), driven mainly by the growth of high-quality liquid assets. Strong customer deposit campaigns helped increase customer deposits by 1% to reach 794 billion QR ($218 billion) of September 30, 2021. Thanks to QNB Group’s strong liquidity position, the loan-to-deposit ratio reached 96.1% in September 30, 2022.
The Group’s drive for operational efficiencies continues to generate cost savings and improved revenue streams which has enabled QNB Group to improve the efficiency ratio (cost to revenue) to 19.3% from 22.5% , which is considered the best ratio among major financial institutions in MEA. Region.
The NPL ratio remained stable at 2.4% in September 30, 2022one of the lowest among financial institutions in the MEA region, reflecting the high quality of the Group’s loan portfolio and the effective management of credit risk as well as the coverage ratio reached 121% after taking into account 6.2 billion QR ($1.7 billion) as a precautionary measure for potential loan losses.
Total equity increased to 106 billion QR ($29 billion), up 5% from September 2021. Earnings per share achieved QAR1.10 (USD0.30).
Capital adequacy ratio (CAR) of the group at September 30, 2022 was 19% above the minimum regulatory requirements of the Central Bank of Qatar and the Basel Committee. In addition, hyperinflation-related accounting adjustments related to our Turkey transactions had an incremental impact on the Group’s capital of approximately 3.5 billion QR.
QNB Group is supported by 27,000 employees operating from approximately 1,000 locations and 4,700 ATMs.