The largest financial institution in the Middle East and Africa (MEA) region, announced its results for the nine months ended 30 September 2022.
Net Profit before the impact of hyperinflation for the nine months ended 30 September 2022 reached QAR12.3 billion (USD3.4 billion), an increase of 20% compared to the same period last year.
Net profit after the impact of hyperinflation to reach QAR11.0 billion (USD3.0 billion), an increase of 7% compared to same period last year, despite successfully overcoming the negative impact of hyperinflation accounting adjustment of QAR1.3 billion (USD356 million).
Operating Income increased by 24% to reach QAR25.6 billion (USD7.0 billion) which reflects the Group’s success in maintaining growth across a range of revenue sources.
Total Assets as at 30 September 2022 recorded an increase of 5% from 30 September 2021 to reach QAR1,135 billion (USD312 billion), mainly driven by growth in high quality liquid assets. Strong customer deposit campaigns helped to increase customer deposits by 1% to reach QAR794 billion (USD218 billion) from 30 September 2021. As result of strong liquidity position of QNB Group, the loans to deposits ratio reached 96.1% as at 30 September 2022.
The Group’s drive for operational efficiency continues to yield cost-savings and enhanced revenue sources that enabled QNB Group to improve the efficiency (cost to income) ratio to 19.3% from 22.5%, which is considered the best ratio among large financial institutions in the MEA region.
The NPL ratio continued to remain stable at 2.4% as at 30 September 2022, 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 and also coverage ratio reached 121% after including QAR6.2 billion (USD1.7 billion) as a precaution for potential loan losses.
Total Equity increased to QAR106 billion (USD29 billion), up by 5% from September 2021. Earnings per share reached QAR1.10 (USD0.30).
Group Capital Adequacy Ratio (CAR) as at 30 September 2022 amounted to 19% higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee. In addition, the hyperinflation accounting adjustments relating to our Turkey operations had incremental impact on Group’s capital by about QAR3.5 billion.