DOHA, Qatar--(BUSINESS WIRE)--QNB Group, one of the World’s Strongest Banks and the leading bank in the Middle East and North Africa, continued to record robust growth in profitability, with Net Profit for 2014 amounting to QR10.5 billion (USD2.9 billion), up by 10.3% compared to 2013.
Based on the strong financial results for 2014 and consistent with QNB Group’s aim of maximising returns to shareholders, the Board of Directors is recommending to the General Assembly the distribution of a cash dividend of 75% of the nominal share value (QAR7.5 per share). The financial results for 2014 along with the profit distribution are subject to Qatar Central Bank (QCB) approval.
The Group’s prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost to income ratio) of 20.8%, which is considered one of the best ratios among financial institutions in the region.
Total assets increased by 9.7% from December 2013 to reach QAR486 billion (USD133.6 billion), the highest ever achieved by the Group. This was the result of a strong growth rate of 8.8% in loans and advances to reach QAR338 billion (USD92.9 billion).
The Group was able to maintain the ratio of non-performing loans to gross loans at 1.6%, a level considered one of the lowest amongst banks in the Middle East and Africa, 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 continued with the coverage ratio reaching 124% in December 2014.
At the same time QNB Group increased customer funding by 7.4% to QAR360 billion (USD99.0 billion). This led to the Group’s loan to deposit ratio reaching 94%.
Total Equity increased by 7.9% from December 2013 to reach QAR58 billion (USD15.9 billion) as at 31 December 2014. Earnings per Share reached QAR14.9 (USD4.1), compared to QAR13.5 in December 2013.
The Group started implementing updated QCB and Basel III requirements for the calculation of the Capital Adequacy Ratio (CAR) from early 2014. The ratio stood at 16.2% as at 31 December 2014, higher than the regulatory minimum requirements of the Qatar Central Bank. The Group is keen to maintain a strong capitalisation in order to support future strategic plans.
As a result of the Group’s high credit ratings and outstanding asset quality, it was selected as one of the world’s 50 safest financial institutions by Global Finance.
Based on the Group’s continuous strong performance and the expanding international presence, the Group improved its ranking as the most valuable brand in the MENA region, with a world ranking of 101 (Brand Value: USD1.81 billion) from 120 in 2012 (Brand Value: USD1.31 billion).
In the second half of 2014, QNB acquired a 19.4% stake (both ordinary and QNB convertible preference shares) in Ecobank Transnational Incorporated (Ecobank), the leading pan-African bank.
Ecobank is a strategic partner for QNB and the acquisition of this stake is a fundamental step towards QNB’s strategy of being a MEA Icon by 2017.
In the second half of 2014, QNB also acquired an additional stake in QNB Indonesia, (rebranded from QNB Kesawan) to have a total stake of 82.59%.
QNB Group is present, through its subsidiaries and associate companies, in more than 26 countries and 3 continents providing a comprehensive range of products and services. The total number of staff is more than 14,500 operating from over 615 locations and with an ATM network of more than 1,310 machines.
*Source: ME NewsWire
