Financial Results For The Three Months Ended 31 March 2020

 QNB Group, the largest financial institution in the Middle East and Africa (MEA) region, announced its results for the three months ended 31 March 2020.

Net Profit for the three months ended 31 March 2020 reached QAR3.6 billion (USD1.0 billion), in line with March 2019 profitability. Total Assets reached QAR964 billion (USD265 billion), an increase of 9% from 31 March 2019.

Strong growth in Loans and advances by 13% to reach QAR708 billion (USD194 billion), contributed to the growth in Total Assets. Strong customer deposits generation helped to increase customer deposits by 11% to reach QAR706 billion (USD194 billion) from 31 March 2019. This helped QNB Group to maintain its loans to deposits ratio at 100% as at 31 March 2020.

Thanks to QNB Group’s robust risk management practices, the first quarter results of QNB Group were not materially impacted by the sudden onset of the covid-19 pandemic. QNB Group has taken all the necessary actions to protect the well-being of its employees, customers and shareholders. In addition, the Group opted to build more loan loss provisions during the first quarter of 2020 as a precautionary measure.

QNB Group improved efficiency (cost to income) ratio from 25.9% to 25.6%, which is considered one of the best ratios among large financial institutions in the MEA region.

NPL ratio amounted to 1.9% as at 31 March 2020, 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. Also during this quarter QNB Group increased its loan loss provisioning by QAR272 million (USD75 million), as a precautionary measure in light of the recent turmoil due to covid-19 pandemic and the associated issues arising from lockdown and slowdown in the key markets where QNB Group operates.

Total Equity increased by 4% to reach QAR89 billion (USD24 billion) as at 31 March 2020. Earnings per Share maintained at QAR0.36 (USD0.10), in line with last year.

Group Capital Adequacy Ratio (CAR) as at 31 March 2020 amounted to 18.4% higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee.

QNB Group serves a customer base of approximately 25 million customers supported by 29,000 staff resources operating from 1,100 locations and more than 4,200 ATMs.

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Last Update : Friday 30 October 2020