QNB Group, the GCC's largest lender, recorded a net profit of QR12.4bn ($3.4bn) for the year ended December 2016, up by 10 percent from last year. Total assets reached QR720bn ($198bn), a 34 percent increase from December 2015, the best absolute results in QNB Group’s history.
The Board of Directors have recommended to the General Assembly, the distribution of a cash dividend of 35 percent of the nominal share value (QR3.5 per share) and a bonus share of 10 percent of the share capital (1 share for every 10 shares).
The growth in assets was driven by loans and advances which grew by 34 percent to reach QR520bn (143bn). At the same time QNB Group increased its customer funding by 28 percent to QR507bn (139bn). This led to the Group’s loans to deposit ratio reaching 103 percent.
QNB Group’s prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost to income ratio) of 30.4 percent, which is considered one of the best ratios among large financial institutions in the region.
The Group was able to maintain the ratio of non-performing loans to gross loans at 1.8 percent, a level considered one of the lowest amongst banks in the Middle East and Africa (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, improved the coverage ratio to reach 114 percent as of 31 December 2016.
Total Equity increased by 14 percent from December 2015 to reach QR71bn ($19bn) as at 31 December 2016. Earnings per Share reached QR14.4 ($4.0), compared to QR13.4 ($3.7) in December 2015.
Capital Adequacy Ratio (CAR) calculated as per the QCB and Basel III requirements stood at 16.0 percent as at 31 December 2016, higher than the regulatory minimum requirements of Qatar Central Bank and the Basel Committee.
During 2016, QNB acquired 99.88 percent stake in Finansbank A.? (now re-branded as QNB Finansbank), which enabled QNB affirm its position as the largest financial institution in MEA region.
Based on the Group’s continuous stellar performance and its diversified international presence, QNB maintained its position as the most valuable bank brand in the MEA region. This continues to recognise QNB’s position as the largest financial institution across the MEA region and the value inherent in the QNB brand.
2016 was another year of outstanding performance, the best absolute results in QNB Group’s history. This strong growth has helped QNB realise its vision of 2017 MEA Icon. Building on QNB’s continued success, QNB Group has embarked on the aspiration of becoming “a leading bank in the Middle East, Africa and Southeast Asia (MEASEA) by 2020”.
