QNB Profits Surge 7 Percent in H1 of 2024

Doha: The net profits of Qatar National Bank Group (QNB) increased in the first half of 2024 by 7 percent to reach QR 8.2 billion, compared to QR 7.6 billion for the same period in 2023, supported by operating income, which rose by 9 percent, reaching QR 20.1 billion. In a statement on Monday, QNB announced that the Board of Directors authorized an interim cash dividend distribution of 33 percent of the nominal share value (QR 0.33 per share), payable to eligible shareholders as at the close of trading on July 17, 2024. The proposed interim cash dividend distribution is subject to approval by the Qatar Central Bank (QCB). This interim dividend proposal is a first ever in QNB's 60-year history and primarily aims to reward QNB's long-term shareholders. Total Assets as at June 30, 2024, reached QR 1,261 billion (USD 346 billion), an increase of 5 percent from June 30, 2023, mainly driven by good growth in loans and advances by 7 percent to reach QR 879 billion (USD 242 billion). Diversified customer deposits generation helped to increase customer deposits by 6 percent to reach QR 891 billion (USD 245 billion) from June 30, 2023. QNB's loans to deposits ratio stood at 98.7 percent as at June 30, 2024. QNB Group's efficiency (cost to income) ratio stood at 22.4 percent, which is considered one of the best ratios among large financial institutions in the MEA region. The ratio of non-performing loans to gross loans stood at 3 percent as at June, 30 2024, one of the lowest amongst financial institutions in the MEA region, reflecting the high quality of the Groups loan book and the effective management of credit risk. In addition, loan loss coverage ratio reached 100 percent, which reflects the prudent approach adopted by the Group towards non-performing loans. QNB Group's Capital Adequacy Ratio (CAR) as at June 30, 2024, amounted to 19.2 percent. Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) as at June 30, 2024, amounted to 185 percent and 105 percent respectively. These ratios are higher than the regulatory minimum requirements of the Qatar Central Bank and Basel III requirements. Total Equity increased to QR 110 billion (USD 30 billion), up by 6 percent from June 2023. Earnings per share reached QR 0.82 (USD 0.22). Source: Qatar News Agency