MMA loans

Financial results for the six months ended June 30, 2022

Net profit (after the impact of hyperinflation) for the six months ended June 30, 2022 achieved QAR 7.0 billion ($1.9 billion), an increase of 4% compared to the same period last year.

Total assets at June 30, 2022 achieved 1,124 billion QR ($309 billion), an increase of 6% compared to June 30, 2021driven mainly by good growth in Loans and advances of 3% to reach 766 billion QR ($210 billion). Diversified customer deposit generation helped increase customer deposits by 4% to reach 795 billion QR ($218 billion) of June 30, 2021.

During the period, the Turkey the transactions were subject to hyperinflationary accounting requirements in accordance with International Financial Reporting Standards, due to which a non-cash “net monetary loss” was recorded in the Group’s income statement for an amount of 744 million QR ($204 million). This accounting adjustment is neutral on the Group’s total equity.

Operating income increased by 20% to reach 16.3 billion QR ($4.5 billion) which reflects the Group’s success in maintaining growth across a range of revenue streams.

The Group’s drive for operational efficiencies continues to drive cost savings and improved revenue streams which has enabled QNB Group to improve the efficiency ratio (cost to revenue) to 20.2% from 22.9% , which is considered one of the best ratios among major financial institutions in the MAE Region.

QNB’s strong asset and liability management capabilities enabled the loan-to-deposit ratio to reach 96.4% in June 30, 2022.

The ratio of non-performing receivables to gross receivables was 2.4% at June 30, 2022, one of the lowest among financial institutions in the MEA region, reflecting the high quality of the Group’s credit portfolio and the effective management of credit risk. In addition, during the six-month period ended June 30, 2022QNB group set aside 3.9 billion QR ($1.1 billion) as a precautionary measure for potential loan losses. This enabled the Group to increase its coverage ratio to 123%, which reflects the Group’s cautious approach to bad debts.

Total equity increased to 103 billion QR ($28 billion), up 5% from June 2021. Earnings per share reached QAR0.71 (USD0.20).

Capital adequacy ratio (CAR) at June 30, 2022 amounted to 18.9% above the minimum regulatory requirements of the Central Bank of Qatar and the Basel Committee.

Group statistics

QNB Group is supported by 27,000 employees operating from approximately 1,000 locations and 4,700 ATMs.

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