QNB Group Posts 6.7% Rise in Q1 Net Profit

Doha, April 07 (QNA) - QNB Group, the leading financial institution in the Middle East and North Africa region, has announced its financial results for the three months ended 31 March 2013. A net profit of QR2.1 billion was achieved, up by 6.7% compared to the same period last year. These results do not include financial results of NSGB- Egypt. QNB Group has recently concluded the acquisition of a controlling stake in NSGB amounting to 97.12%. It is anticipated that the incorporation of the financial results of NSGB will be completed during the second quarter of 2013. Total assets increased by 22.2% from March 2012 to reach QR380 billion, the highest ever achieved by the Bank. This was the result of a strong growth rate of 28.7% in loans and advances to reach QR259 billion, while customer deposits increased by 28.2% to QR280 billion. The Bank was able to maintain the ratio of non-performing loans to gross loans at 1.4%, a level considered one of the lowest amongst banks in the Middle East and Africa, reflecting the high quality of the Groups loan book and the effective management of credit risk. The Groups conservative policy in regard to provisioning continued with the coverage ratio reaching 119% in March 2013. The Groups prudent cost control policy and strong revenue generating capability allowed it to maintain efficiency ratio (cost to income ratio) of 17.7%, which is considered one of the best ratios among financial institutions in the region. Total Equity increased by 9.3% from March 2012 to reach QR46 billion as at 31 March 2013. The capital adequacy ratio stood at 20.5% as at 31 March 2013, far higher than the regulatory requirements of QCB and the Basel Committee. The Group is keen to maintain a strong capitalisation in order to support future strategic plans. During the first quarter of 2013, QNB Group has successfully completed the acquisition of a controlling stake in NSGB amounting to 97.12%, which included the full stake of Societe Generale France amounting to 77.17% along with 19.95% acquired from other shareholders. This acquisition is considered one of the largest in the Middle East and is in line with QNB Groups strategy to expand its presence in selected markets in the region that have a strong growth potential. This acquisition is an important step for QNB Group to realise its vision of being a Middle East and Africa Icon by 2017. As a result of the Banks high credit ratings and outstanding asset quality, it was selected as one the worlds 50 safest financial institutions by Global Finance. Based on the Groups continuous strong performance and the expanding international presence, the bank is currently ranked as the most valuable brand in the MENA region, with a world ranking of 120. (QNA)